OKLAHOMA CITY, Nov. 5,
2021 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth"
or the "Company") (NASDAQ: TUSK) today reported financial and
operational results for the third quarter ended September 30,
2021.
Financial Overview for the Third Quarter 2021:
Total revenue was $57.5 million
for the third quarter of 2021, as compared to $70.5 million for the same quarter last year and
$47.4 million for the second
quarter of 2021.
Net loss for the third quarter of 2021 was $40.9 million, or a $0.88 loss per share, as compared to net income
of $3.4 million, or a $0.07 income per share, for the same quarter last
year, and a net loss of $34.8
million, or a $0.75 loss per
share, for the second quarter of 2021.
Adjusted EBITDA (as defined and reconciled below) was
($29.7) million for the third quarter
of 2021, as compared to $22.1 million
for the same quarter last year and ($5.5)
million for the second quarter of 2021. During the third
quarter of 2021, Mammoth recognized expense of $32.6 million related to its settlement with
Gulfport Energy Corporation. Excluding this non-recurring expense,
adjusted EBITDA was $2.9 million for
the third quarter of 2021.
Arty Straehla, Chief Executive Officer of Mammoth commented, "We
are pleased with the positive trajectory throughout our business
segments during the third quarter compared to the second quarter,
which led to higher revenue and an improved bottom line. We are
also encouraged by the positive trends in our infrastructure
business in the third quarter, including increased storm work
relative to the second quarter, a new fiber maintenance and
installation contract and increased bidding activity, as well as
internal personnel changes that are gaining traction in this
segment. Funding for projects in the infrastructure space remains
strong with the added opportunity of a new federal infrastructure
bill, which we are optimistic will be passed in the near future.
While this is a sector impacted by near-term seasonality, we remain
focused on improving results as we continue migrating the Company
further into the infrastructure space to enhance long-term growth
and sustainability.
"In our oilfield businesses, improved commodities pricing
continues to contribute to positive industry movement and increased
equipment utilization as we ramped up a second hydraulic fracturing
fleet during the quarter. In our sand business, we continue to see
increased market activity."
Straehla continued, "Lastly, as documented in several recent
press releases, we are continuing to pursue numerous avenues in our
efforts to collect our receivable from PREPA for work performed by
our subsidiary Cobra Acquisitions LLC in Puerto Rico. We believe that published
documentation to date continues to show that our team performed a
difficult job in a difficult environment to save lives and aid the
people of Puerto Rico in their
time of need."
Infrastructure Services
Mammoth's infrastructure
services division contributed revenue of $23.5 million, or approximately 41% of Mammoth's
total revenue, for the third quarter of 2021, as compared to
$43.6 million for the same quarter
last year and $17.2 million for the
second quarter of 2021. The decrease in revenue compared to the
same quarter of 2020 is primarily due to a decline in storm
activity, resulting in lower storm restoration revenue, as well as
management and crew turnover.
Well Completion Services
Mammoth's well completion
services division contributed revenue (inclusive of inter-segment
revenue) of $22.7 million on 688
stages for the third quarter of 2021, as compared to $15.8 million on 449 stages for the same quarter
last year and $17.4 million on 520
stages for the second quarter of 2021. On average, 1.2 of the
Company's fleets were active for the third quarter, compared to an
average utilization of 0.9 fleets during the same quarter last year
and during the second quarter of 2021.
Natural Sand Proppant Services
Mammoth's natural sand
proppant services division contributed revenue (inclusive of
inter-segment revenue) of $8.4
million for the third quarter of 2021, as compared to
$6.0 million for the same quarter
last year and $6.9 million for the
second quarter of 2021. In the third quarter of 2021, the Company
sold approximately 315,000 tons of sand at an average sales price
of $16.58 per ton, as compared to
sales of approximately 68,000 tons of sand at an average sales
price of $15.59 per ton during the
same quarter last year. In the second quarter of 2021, sales were
approximately 255,000 tons of sand at an average price of
$15.80 per ton.
Drilling Services
Mammoth's drilling services division
contributed revenue (inclusive of inter-segment revenue) of
$1.2 million for the third quarter of
2021, as compared to $1.2 million for
the same quarter last year and $1.1
million for the second quarter of 2021.
As a result of market conditions, the Company temporarily shut
down its contract land drilling operations beginning in
December 2019 and its rig hauling
operations beginning in April
2020.
Other Services
Mammoth's other services, including
aviation, coil tubing, pressure control, equipment rentals, crude
oil hauling, full-service transportation, remote accommodations,
equipment manufacturing and infrastructure engineering and design
services, contributed revenue (inclusive of inter-segment revenue)
of $6.2 million for the third quarter
of 2021, as compared to $4.7 million
for the same quarter last year and $5.5
million for the second quarter of 2021.
As a result of market conditions, the Company temporarily shut
down its cementing and acidizing operations as well as its flowback
operations beginning in July 2019,
its coil tubing and full-service transportation operations
beginning in July 2020 and its crude
oil hauling operations beginning in July
2021.
Selling, General and Administrative Expenses
Selling,
general and administrative ("SG&A") expenses were $41.9 million for the third quarter of 2021, as
compared to $12.2 million for the
same quarter last year and $12.0
million for the second quarter of 2021.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Cash
expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
|
3,353
|
|
|
$
|
3,449
|
|
|
$
|
3,333
|
|
|
$
|
11,379
|
|
|
$
|
11,138
|
|
Professional
services
|
4,571
|
|
|
5,651
|
|
|
5,806
|
|
|
13,783
|
|
|
15,335
|
|
Other(a)
|
2,252
|
|
|
2,163
|
|
|
2,464
|
|
|
7,058
|
|
|
6,572
|
|
Total cash SG&A
expense
|
10,176
|
|
|
11,263
|
|
|
11,603
|
|
|
32,220
|
|
|
33,045
|
|
Non-cash
expenses:
|
|
|
|
|
|
|
|
|
|
Bad debt
provision(b)
|
31,449
|
|
|
626
|
|
|
76
|
|
|
41,650
|
|
|
2,306
|
|
Stock based
compensation
|
241
|
|
|
291
|
|
|
304
|
|
|
827
|
|
|
1,326
|
|
Total non-cash
SG&A expense
|
31,690
|
|
|
917
|
|
|
380
|
|
|
42,477
|
|
|
3,632
|
|
Total SG&A
expense
|
$
|
41,866
|
|
|
$
|
12,180
|
|
|
$
|
11,983
|
|
|
$
|
74,697
|
|
|
$
|
36,677
|
|
|
|
a.
|
Includes
travel-related costs, information technology expenses, rent,
utilities and other general and administrative-related
costs.
|
b.
|
The bad debt
provision for the three and nine months ended September 30,
2021, includes $31.2 million and $41.2 million, respectively, for
settlement of our accounts with Gulfport Energy Corporation and its
subsidiaries.
|
SG&A expenses, as a percentage of total revenue, were 73%
for the third quarter of 2021, as compared to 17% for the same
quarter last year and 25% for the second quarter of 2021.
Liquidity
As of September 30, 2021, Mammoth had
cash on hand of $8.0 million,
outstanding borrowings under its revolving credit facility of
$77.0 million and $43.2 million of available borrowing capacity
under its revolving credit facility, after giving effect to
$9.0 million of outstanding letters
of credit. As of September 30, 2021, Mammoth had total
liquidity of $51.2 million.
On November 3, 2021, Mammoth
entered into a third amendment to its revolving credit facility,
providing, among other things, for a limited waiver and suspension
of the leverage ratio and fixed charges coverage ratio covenants
for the quarters ending September 30,
2021 and December 31, 2021 and
permanently reducing the maximum revolving advance amount under its
revolving credit facility from $130
million to $120 million. As of
November 3, 2021, Mammoth had cash on hand of $6.5 million, outstanding borrowings under its
revolving credit facility of $76.1
million and $24.1 million of
available borrowing capacity under its revolving credit facility,
after giving effect to $9.0 million
of outstanding letters of credit, the $10
million reduction in the borrowing base and the requirement
to maintain a $10 million reserve out
of the available borrowing capacity during the limited waiver
period, which will end on May 15,
2022, but may terminate earlier upon the occurrence of
certain events.
Capital Expenditures
The following table summarizes
Mammoth's capital expenditures by operating division for the
periods indicated (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Infrastructure
services(a)
|
$
|
181
|
|
|
$
|
178
|
|
|
$
|
104
|
|
|
$
|
474
|
|
|
$
|
221
|
|
Well completion
services(b)
|
2,392
|
|
|
698
|
|
|
388
|
|
|
3,192
|
|
|
3,752
|
|
Natural sand proppant
services(c)
|
16
|
|
|
194
|
|
|
5
|
|
|
429
|
|
|
1,069
|
|
Drilling
services(d)
|
4
|
|
|
132
|
|
|
1
|
|
|
42
|
|
|
199
|
|
Other(e)
|
172
|
|
|
323
|
|
|
63
|
|
|
337
|
|
|
708
|
|
Total capital
expenditures
|
$
|
2,765
|
|
|
$
|
1,525
|
|
|
$
|
561
|
|
|
$
|
4,474
|
|
|
$
|
5,949
|
|
|
|
a.
|
Capital expenditures
primarily for tooling and other equipment for the periods
presented.
|
b.
|
Capital expenditures
primarily for upgrades to our pressure pumping fleet to reduce
greenhouse gas emissions and water transfer equipment for the
periods presented.
|
c.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
d.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
e.
|
Capital expenditures
primarily for equipment for the Company's rental businesses for the
periods presented.
|
Conference Call Information
Mammoth will host a
conference call on Friday, November 5,
2021 at 8:00 a.m. Central time
(9:00 a.m. Eastern time) to discuss
its third quarter 2021 financial and operational results. The
telephone number to access the conference call is 216-562-0385. The
conference call will also be webcast live on
https://ir.mammothenergy.com/events-presentations.
About Mammoth Energy Services, Inc.
Mammoth is an
integrated, growth-oriented energy services company focused on the
construction and repair of the electric grid for private utilities,
public investor-owned utilities and co-operative utilities through
its infrastructure services businesses. The Company also provides
products and services to enable the exploration and development of
North American onshore unconventional oil and natural gas reserves.
Mammoth's suite of services and products include: infrastructure
services, well completion services, natural sand and proppant
services, drilling services and other energy services. For more
information, please visit www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary
Statements
This news release (and any oral statements
made regarding the subjects of this release, including on the
conference call announced herein) contains certain statements and
information that may constitute "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, and the Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical facts
that address activities, events or developments that Mammoth
expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words "anticipate," "believe,"
"ensure," "expect," "if," "intend," "plan," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely" and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, acquisitions, returns, capital expenditure
budgets, costs and other guidance regarding future developments.
Forward-looking statements are not assurances of future
performance. These forward-looking statements are based on
management's current expectations and beliefs, forecasts for the
Company's existing operations, experience and perception of
historical trends, current conditions, anticipated future
developments and their effect on Mammoth, and other factors
believed to be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from historical
experience and present expectations or projections which are
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to: the severity and duration of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions and the resulting negative impact on demand for our
services; the volatility of oil and natural gas prices and actions
by OPEC members and other exporting nations affecting commodities
prices and production levels; operational challenges relating to
the COVID-19 pandemic and efforts to mitigate the spread of the
virus, including logistical challenges, protecting the health and
well-being of our employees, remote work arrangements, performance
of contracts and supply chain disruptions; the failure to receive
or delays in receiving governmental authorizations, approvals
and/or payments; the outcome of ongoing government investigations
and other legal proceedings, including those relating to the
contracts awarded to the Company's subsidiary Cobra Acquisitions
LLC by the Puerto Rico Electric Power Authority; the Company's
inability to replace the prior levels of work in its business
segments, including its infrastructure and well completion services
segments; risks relating to economic conditions; whether a federal
infrastructure bill is implemented and the terms thereof; the loss
of or interruption in operations of one or more of Mammoth's
significant suppliers or customers; the loss of management and/or
crews; the outcome or settlement of our litigation matters,
including the adverse impact of the recent settlements with
Gulfport Energy Corporation and MasTec Renewables Puerto Rico, LLC,
and the effect on our financial condition and results of operations
; the effects of government regulation, permitting and other legal
requirements; operating risks; the adequacy of capital resources
and liquidity; Mammoth's ability to regain compliance with certain
financial covenants and comply with other terms and conditions
under our recently amended revolving credit facility; weather;
natural disasters; litigation; volatility in commodity markets;
competition in the oil and natural gas and infrastructure
industries; and costs and availability of resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
|
|
ASSETS
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
CURRENT
ASSETS
|
|
(in
thousands)
|
Cash and cash
equivalents
|
|
$
|
7,953
|
|
|
$
|
14,822
|
|
Short-term
investment
|
|
1,760
|
|
|
1,750
|
|
Accounts receivable,
net
|
|
402,035
|
|
|
393,112
|
|
Receivables from
related parties, net
|
|
238
|
|
|
28,461
|
|
Inventories
|
|
9,438
|
|
|
12,020
|
|
Prepaid
expenses
|
|
3,859
|
|
|
13,825
|
|
Other current
assets
|
|
754
|
|
|
758
|
|
Total current
assets
|
|
426,037
|
|
|
464,748
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
194,478
|
|
|
251,262
|
|
Sand
reserves
|
|
64,806
|
|
|
65,876
|
|
Operating lease
right-of-use assets
|
|
14,766
|
|
|
20,179
|
|
Intangible assets,
net - customer relationships
|
|
277
|
|
|
408
|
|
Intangible assets,
net - trade names
|
|
3,194
|
|
|
4,366
|
|
Goodwill
|
|
12,608
|
|
|
12,608
|
|
Deferred income tax
asset
|
|
8,094
|
|
|
—
|
|
Other non-current
assets
|
|
4,247
|
|
|
5,115
|
|
Total
assets
|
|
$
|
728,507
|
|
|
$
|
824,562
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts
payable
|
|
$
|
43,628
|
|
|
$
|
40,316
|
|
Payables to related
parties
|
|
5
|
|
|
3
|
|
Accrued expenses and
other current liabilities
|
|
54,724
|
|
|
44,408
|
|
Current operating
lease liability
|
|
6,996
|
|
|
8,618
|
|
Current portion of
long-term debt
|
|
1,449
|
|
|
1,165
|
|
Income taxes
payable
|
|
39,283
|
|
|
34,088
|
|
Total current
liabilities
|
|
146,085
|
|
|
128,598
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
|
79,195
|
|
|
81,338
|
|
Deferred income tax
liabilities
|
|
687
|
|
|
24,741
|
|
Long-term operating
lease liability
|
|
7,591
|
|
|
11,377
|
|
Asset retirement
obligation
|
|
3,682
|
|
|
4,746
|
|
Other
liabilities
|
|
15,003
|
|
|
10,435
|
|
Total
liabilities
|
|
252,243
|
|
|
261,235
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Equity:
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 46,684,065 and 45,769,283
issued
and outstanding at September 30, 2021 and December 31,
2020
|
|
467
|
|
|
458
|
|
Additional paid in
capital
|
|
537,980
|
|
|
537,039
|
|
Retained
earnings
|
|
(59,236)
|
|
|
28,895
|
|
Accumulated other
comprehensive loss
|
|
(2,947)
|
|
|
(3,065)
|
|
Total
equity
|
|
476,264
|
|
|
563,327
|
|
Total liabilities and
equity
|
|
$
|
728,507
|
|
|
$
|
824,562
|
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
(in thousands,
except per share amounts)
|
REVENUE
|
|
Services
revenue
|
$
|
52,417
|
|
|
$
|
55,279
|
|
|
$
|
40,867
|
|
|
$
|
135,975
|
|
|
$
|
169,002
|
|
Services revenue -
related parties
|
601
|
|
|
8,565
|
|
|
90
|
|
|
15,678
|
|
|
35,228
|
|
Product
revenue
|
4,467
|
|
|
4,815
|
|
|
6,483
|
|
|
17,932
|
|
|
18,171
|
|
Product revenue -
related parties
|
—
|
|
|
1,875
|
|
|
—
|
|
|
2,145
|
|
|
5,625
|
|
Total
revenue
|
57,485
|
|
|
70,534
|
|
|
47,440
|
|
|
171,730
|
|
|
228,026
|
|
|
|
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $35,857, $20,424, $17,861, $53,448 and $65,728,
respectively, for the three months ended September 30, 2021,
September 30, 2020 and June 30, 2021 and nine months ended
September 30, 2021 and 2020)
|
43,538
|
|
|
41,445
|
|
|
43,103
|
|
|
128,703
|
|
|
154,397
|
|
Services cost of
revenue - related parties (exclusive of depreciation, depletion,
amortization and accretion of $0, $0, $0, $0 and $0, respectively,
for the three months ended September 30, 2021, September 30, 2020
and June 30, 2021 and nine months ended September 30, 2021 and
2020)
|
181
|
|
|
131
|
|
|
107
|
|
|
397
|
|
|
329
|
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $4,667, $2,689, $2,384, $7,051 and $7,344,
respectively, for the three months ended September 30, 2021,
September 30, 2020 and June 30, 2021 and nine months ended
September 30, 2021 and 2020)
|
9,865
|
|
|
4,353
|
|
|
7,165
|
|
|
22,939
|
|
|
21,862
|
|
Selling, general and
administrative
|
41,866
|
|
|
11,979
|
|
|
11,791
|
|
|
74,312
|
|
|
36,063
|
|
Selling, general and
administrative - related parties
|
—
|
|
|
201
|
|
|
192
|
|
|
385
|
|
|
614
|
|
Depreciation,
depletion, amortization and accretion
|
19,148
|
|
|
23,132
|
|
|
20,265
|
|
|
60,559
|
|
|
73,130
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,973
|
|
Impairment of other
long-lived assets
|
547
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|
12,897
|
|
Total cost and
expenses
|
115,145
|
|
|
81,241
|
|
|
82,623
|
|
|
287,842
|
|
|
354,265
|
|
Operating
loss
|
(57,660)
|
|
|
(10,707)
|
|
|
(35,183)
|
|
|
(116,112)
|
|
|
(126,239)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(1,484)
|
|
|
(1,098)
|
|
|
(1,169)
|
|
|
(3,878)
|
|
|
(4,207)
|
|
Other income
(expense), net
|
11,056
|
|
|
7,943
|
|
|
(14,998)
|
|
|
6,004
|
|
|
23,489
|
|
Other income
(expense), net - related parties
|
—
|
|
|
1,099
|
|
|
—
|
|
|
(515)
|
|
|
2,232
|
|
Total other income
(expense)
|
9,572
|
|
|
7,944
|
|
|
(16,167)
|
|
|
1,611
|
|
|
21,514
|
|
Loss before income
taxes
|
(48,088)
|
|
|
(2,763)
|
|
|
(51,350)
|
|
|
(114,501)
|
|
|
(104,725)
|
|
Benefit for income
taxes
|
(7,187)
|
|
|
(6,193)
|
|
|
(16,560)
|
|
|
(26,370)
|
|
|
(8,979)
|
|
Net (loss)
income
|
$
|
(40,901)
|
|
|
$
|
3,430
|
|
|
$
|
(34,790)
|
|
|
$
|
(88,131)
|
|
|
$
|
(95,746)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of tax of ($69), ($95), $63, $36
and $116, respectively, for the three months ended September 30,
2021, September 30, 2020 and June 30, 2021 and nine months ended
September 30, 2021 and 2020
|
(289)
|
|
|
324
|
|
|
239
|
|
|
118
|
|
|
(422)
|
|
Comprehensive (loss)
income
|
$
|
(41,190)
|
|
|
$
|
3,754
|
|
|
$
|
(34,551)
|
|
|
$
|
(88,013)
|
|
|
$
|
(96,168)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
$
|
(0.88)
|
|
|
$
|
0.07
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.90)
|
|
|
$
|
(2.10)
|
|
Net (loss) income per
share (diluted)
|
$
|
(0.88)
|
|
|
$
|
0.07
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.90)
|
|
|
$
|
(2.10)
|
|
Weighted average
number of shares outstanding (basic)
|
46,683
|
|
|
45,764
|
|
|
46,402
|
|
|
46,342
|
|
|
45,603
|
|
Weighted average
number of shares outstanding (diluted)
|
46,683
|
|
|
46,571
|
|
|
46,402
|
|
|
46,342
|
|
|
45,603
|
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2021
|
|
2020
|
|
(in
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(88,131)
|
|
|
$
|
(95,746)
|
|
Adjustments to
reconcile net loss to cash (used in) provided by operating
activities:
|
|
|
|
Stock based
compensation
|
950
|
|
|
1,598
|
|
Depreciation,
depletion, accretion and amortization
|
60,559
|
|
|
73,130
|
|
Amortization of coil
tubing strings
|
—
|
|
|
359
|
|
Amortization of debt
origination costs
|
469
|
|
|
703
|
|
Bad debt
expense
|
41,650
|
|
|
2,306
|
|
Gain on disposal of
property and equipment
|
(4,632)
|
|
|
(927)
|
|
Impairment of
goodwill
|
—
|
|
|
54,973
|
|
Impairment of other
long-lived assets
|
547
|
|
|
12,897
|
|
Deferred income
taxes
|
(32,183)
|
|
|
(7,334)
|
|
Other
|
502
|
|
|
581
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
net
|
(50,666)
|
|
|
(11,707)
|
|
Receivables from
related parties
|
28,224
|
|
|
(31,152)
|
|
Inventories
|
2,582
|
|
|
3,827
|
|
Prepaid expenses and
other assets
|
9,947
|
|
|
8,803
|
|
Accounts
payable
|
2,597
|
|
|
(5,211)
|
|
Payables to related
parties
|
2
|
|
|
(508)
|
|
Accrued expenses and
other liabilities
|
6,627
|
|
|
(3,166)
|
|
Income taxes
payable
|
5,192
|
|
|
(1,644)
|
|
Net cash (used in)
provided by operating activities
|
(15,764)
|
|
|
1,782
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(4,474)
|
|
|
(5,873)
|
|
Purchases of property
and equipment from related parties
|
—
|
|
|
(76)
|
|
Proceeds from disposal
of property and equipment
|
9,581
|
|
|
4,859
|
|
Net cash provided by
(used in) investing activities
|
5,107
|
|
|
(1,090)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
long-term debt
|
31,700
|
|
|
30,800
|
|
Repayments of
long-term debt
|
(33,571)
|
|
|
(21,000)
|
|
Proceeds from sale
leaseback transaction
|
9,473
|
|
|
—
|
|
Payments on sale
leaseback transaction
|
(2,106)
|
|
|
—
|
|
Principal payments on
financing leases and equipment financing notes
|
(1,716)
|
|
|
(1,423)
|
|
Debt issuance
costs
|
—
|
|
|
(1,000)
|
|
Net cash provided by
financing activities
|
3,780
|
|
|
7,377
|
|
Effect of foreign
exchange rate on cash
|
8
|
|
|
(57)
|
|
Net change in cash
and cash equivalents
|
(6,869)
|
|
|
8,012
|
|
Cash and cash
equivalents at beginning of period
|
14,822
|
|
|
5,872
|
|
Cash and cash
equivalents at end of period
|
$
|
7,953
|
|
|
$
|
13,884
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Cash paid for
interest
|
$
|
3,236
|
|
|
$
|
3,637
|
|
Cash paid for income
taxes, net of refunds received
|
$
|
978
|
|
|
$
|
13
|
|
Supplemental
disclosure of non-cash transactions:
|
|
|
|
Purchases of property
and equipment included in accounts payable
|
$
|
2,028
|
|
|
$
|
2,032
|
|
MAMMOTH ENERGY
SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
|
|
Three months ended
September 30, 2021
|
Infrastructure
|
Well
Completion(a)
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
|
23,489
|
|
$
|
22,702
|
|
$
|
4,439
|
|
$
|
1,184
|
|
$
|
5,671
|
|
$
|
—
|
|
$
|
57,485
|
|
Intersegment
revenues
|
—
|
|
30
|
|
3,980
|
|
23
|
|
482
|
|
(4,515)
|
|
—
|
|
Total
revenue
|
23,489
|
|
22,732
|
|
8,419
|
|
1,207
|
|
6,153
|
|
(4,515)
|
|
57,485
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
20,541
|
|
18,125
|
|
9,368
|
|
1,566
|
|
4,917
|
|
—
|
|
54,517
|
|
Intersegment cost of
revenues
|
54
|
|
3,204
|
|
—
|
|
—
|
|
324
|
|
(4,515)
|
|
(933)
|
|
Total cost of
revenue
|
20,595
|
|
21,329
|
|
9,368
|
|
1,566
|
|
5,241
|
|
(4,515)
|
|
53,584
|
|
Selling, general and
administrative
|
4,586
|
|
34,606
|
|
1,068
|
|
288
|
|
1,318
|
|
—
|
|
41,866
|
|
Depreciation,
depletion, amortization and accretion
|
4,933
|
|
6,538
|
|
2,533
|
|
1,942
|
|
3,202
|
|
—
|
|
19,148
|
|
Impairment of other
long-lived assets
|
—
|
|
—
|
|
—
|
|
—
|
|
547
|
|
—
|
|
547
|
|
Operating
loss
|
(6,625)
|
|
(39,741)
|
|
(4,550)
|
|
(2,589)
|
|
(4,155)
|
|
—
|
|
(57,660)
|
|
Interest expense,
net
|
971
|
|
215
|
|
107
|
|
56
|
|
135
|
|
—
|
|
1,484
|
|
Other (income)
expense, net
|
(9,256)
|
|
755
|
|
(46)
|
|
(66)
|
|
(2,443)
|
|
—
|
|
(11,056)
|
|
Income (loss) before
income taxes
|
$
|
1,660
|
|
$
|
(40,711)
|
|
$
|
(4,611)
|
|
$
|
(2,579)
|
|
$
|
(1,847)
|
|
$
|
—
|
|
$
|
(48,088)
|
|
|
Three months ended
September 30, 2020
|
Infrastructure
|
Well
Completion(a)
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
|
43,582
|
|
$
|
15,738
|
|
$
|
6,031
|
|
$
|
1,193
|
|
$
|
3,990
|
|
$
|
—
|
|
$
|
70,534
|
|
Intersegment
revenues
|
—
|
|
27
|
|
—
|
|
11
|
|
687
|
|
(725)
|
|
—
|
|
Total
revenue
|
43,582
|
|
15,765
|
|
6,031
|
|
1,204
|
|
4,677
|
|
(725)
|
|
70,534
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
28,883
|
|
6,510
|
|
4,154
|
|
1,955
|
|
4,427
|
|
—
|
|
45,929
|
|
Intersegment cost of
revenues
|
162
|
|
449
|
|
—
|
|
—
|
|
114
|
|
(725)
|
|
—
|
|
Total cost of
revenue
|
29,045
|
|
6,959
|
|
4,154
|
|
1,955
|
|
4,541
|
|
(725)
|
|
45,929
|
|
Selling, general and
administrative
|
7,227
|
|
1,721
|
|
1,056
|
|
382
|
|
1,794
|
|
—
|
|
12,180
|
|
Depreciation,
depletion, amortization and accretion
|
7,294
|
|
7,189
|
|
2,700
|
|
2,294
|
|
3,655
|
|
—
|
|
23,132
|
|
Operating income
(loss)
|
16
|
|
(104)
|
|
(1,879)
|
|
(3,427)
|
|
(5,313)
|
|
—
|
|
(10,707)
|
|
Interest expense,
net
|
623
|
|
253
|
|
70
|
|
60
|
|
92
|
|
—
|
|
1,098
|
|
Other (income)
expense, net
|
(8,375)
|
|
(1,156)
|
|
1,792
|
|
20
|
|
(1,323)
|
|
—
|
|
(9,042)
|
|
Income (loss) before
income taxes
|
$
|
7,768
|
|
$
|
799
|
|
$
|
(3,741)
|
|
$
|
(3,507)
|
|
$
|
(4,082)
|
|
$
|
—
|
|
$
|
(2,763)
|
|
|
Three months ended
June 30, 2021
|
Infrastructure
|
Well
Completion(a)
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
|
17,220
|
|
$
|
17,337
|
|
$
|
6,886
|
|
$
|
1,130
|
|
$
|
4,867
|
|
$
|
—
|
|
$
|
47,440
|
|
Intersegment
revenues
|
—
|
|
36
|
|
—
|
|
17
|
|
682
|
|
(735)
|
|
—
|
|
Total
revenue
|
17,220
|
|
17,373
|
|
6,886
|
|
1,147
|
|
5,549
|
|
(735)
|
|
47,440
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
19,881
|
|
16,396
|
|
7,400
|
|
1,568
|
|
5,130
|
|
—
|
|
50,375
|
|
Intersegment cost of
revenues
|
50
|
|
666
|
|
—
|
|
—
|
|
19
|
|
(735)
|
|
—
|
|
Total cost of
revenue
|
19,931
|
|
17,062
|
|
7,400
|
|
1,568
|
|
5,149
|
|
(735)
|
|
50,375
|
|
Selling, general and
administrative
|
7,383
|
|
1,893
|
|
991
|
|
395
|
|
1,321
|
|
—
|
|
11,983
|
|
Depreciation,
depletion, amortization and accretion
|
5,899
|
|
6,447
|
|
2,387
|
|
2,079
|
|
3,453
|
|
—
|
|
20,265
|
|
Operating
loss
|
(15,993)
|
|
(8,029)
|
|
(3,892)
|
|
(2,895)
|
|
(4,374)
|
|
—
|
|
(35,183)
|
|
Interest expense,
net
|
656
|
|
219
|
|
90
|
|
58
|
|
146
|
|
—
|
|
1,169
|
|
Other expense
(income), net
|
15,904
|
|
1
|
|
(53)
|
|
(127)
|
|
(727)
|
|
—
|
|
14,998
|
|
Loss before income
taxes
|
$
|
(32,553)
|
|
$
|
(8,249)
|
|
$
|
(3,929)
|
|
$
|
(2,826)
|
|
$
|
(3,793)
|
|
$
|
—
|
|
$
|
(51,350)
|
|
|
Nine months ended
September 30, 2021
|
Infrastructure
|
Well
Completion(a)
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
|
69,965
|
|
$
|
62,939
|
|
$
|
20,031
|
|
$
|
3,234
|
|
$
|
15,561
|
|
$
|
—
|
|
$
|
171,730
|
|
Intersegment
revenues
|
—
|
|
120
|
|
3,980
|
|
54
|
|
1,804
|
|
(5,958)
|
|
—
|
|
Total
revenue
|
69,965
|
|
63,059
|
|
24,011
|
|
3,288
|
|
17,365
|
|
(5,958)
|
|
171,730
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
66,864
|
|
42,339
|
|
22,631
|
|
4,739
|
|
15,466
|
|
—
|
|
152,039
|
|
Intersegment cost of
revenues
|
165
|
|
5,449
|
|
—
|
|
—
|
|
344
|
|
(5,958)
|
|
—
|
|
Total cost of
revenue
|
67,029
|
|
47,788
|
|
22,631
|
|
4,739
|
|
15,810
|
|
(5,958)
|
|
152,039
|
|
Selling, general and
administrative
|
18,222
|
|
47,111
|
|
4,108
|
|
1,105
|
|
4,151
|
|
—
|
|
74,697
|
|
Depreciation,
depletion, amortization and accretion
|
17,499
|
|
19,668
|
|
7,059
|
|
6,185
|
|
10,148
|
|
—
|
|
60,559
|
|
Impairment of other
long-lived assets
|
—
|
|
—
|
|
—
|
|
—
|
|
547
|
|
—
|
|
547
|
|
Operating
loss
|
(32,785)
|
|
(51,508)
|
|
(9,787)
|
|
(8,741)
|
|
(13,291)
|
|
—
|
|
(116,112)
|
|
Interest expense,
net
|
2,287
|
|
688
|
|
291
|
|
177
|
|
435
|
|
—
|
|
3,878
|
|
Other (income)
expense, net
|
(2,663)
|
|
1,196
|
|
(892)
|
|
(201)
|
|
(2,929)
|
|
—
|
|
(5,489)
|
|
Loss before income
taxes
|
$
|
(32,409)
|
|
$
|
(53,392)
|
|
$
|
(9,186)
|
|
$
|
(8,717)
|
|
$
|
(10,797)
|
|
$
|
—
|
|
$
|
(114,501)
|
|
|
Nine months ended
September 30, 2020
|
Infrastructure
|
Well
Completion(a)
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
|
99,307
|
|
$
|
74,549
|
|
$
|
22,421
|
|
$
|
7,166
|
|
$
|
24,583
|
|
$
|
—
|
|
$
|
228,026
|
|
Intersegment
revenues
|
—
|
|
1,080
|
|
95
|
|
16
|
|
2,046
|
|
(3,237)
|
|
—
|
|
Total
revenue
|
99,307
|
|
75,629
|
|
22,516
|
|
7,182
|
|
26,629
|
|
(3,237)
|
|
228,026
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
80,780
|
|
40,454
|
|
21,845
|
|
9,592
|
|
23,917
|
|
—
|
|
176,588
|
|
Intersegment cost of
revenues
|
197
|
|
1,410
|
|
—
|
|
151
|
|
1,479
|
|
(3,237)
|
|
—
|
|
Total cost of
revenue
|
80,977
|
|
41,864
|
|
21,845
|
|
9,743
|
|
25,396
|
|
(3,237)
|
|
176,588
|
|
Selling, general and
administrative
|
19,001
|
|
5,347
|
|
3,737
|
|
2,776
|
|
5,816
|
|
—
|
|
36,677
|
|
Depreciation,
depletion, amortization and accretion
|
22,416
|
|
23,346
|
|
7,380
|
|
7,814
|
|
12,174
|
|
—
|
|
73,130
|
|
Impairment of
goodwill
|
—
|
|
53,406
|
|
—
|
|
—
|
|
1,567
|
|
—
|
|
54,973
|
|
Impairment of other
long-lived assets
|
—
|
|
4,203
|
|
—
|
|
326
|
|
8,368
|
|
—
|
|
12,897
|
|
Operating
loss
|
(23,087)
|
|
(52,537)
|
|
(10,446)
|
|
(13,477)
|
|
(26,692)
|
|
—
|
|
(126,239)
|
|
Interest expense,
net
|
2,091
|
|
857
|
|
217
|
|
450
|
|
592
|
|
—
|
|
4,207
|
|
Other (income)
expense, net
|
(24,082)
|
|
(2,444)
|
|
1,753
|
|
(251)
|
|
(697)
|
|
—
|
|
(25,721)
|
|
Loss before income
taxes
|
$
|
(1,096)
|
|
$
|
(50,950)
|
|
$
|
(12,416)
|
|
$
|
(13,676)
|
|
$
|
(26,587)
|
|
$
|
—
|
|
$
|
(104,725)
|
|
|
|
a.
|
Mammoth changed the
name of its pressure pumping segment to the well completion segment
during the fourth quarter of 2020.
|
MAMMOTH ENERGY
SERVICES, INC. RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
|
|
Adjusted
EBITDA
|
|
Adjusted EBITDA is a
supplemental non-GAAP financial measure that is used by management
and external users of the Company's financial statements, such as
industry analysts, investors, lenders and rating agencies. Mammoth
defines Adjusted EBITDA as net income (loss) before depreciation,
depletion, amortization and accretion expense, impairment of
goodwill, impairment of other long-lived assets, public offering
costs, stock based compensation, interest expense, net, other
(income) expense, net (which is comprised of the (gain) or loss on
disposal of long-lived assets and interest on trade accounts
receivable) and provision (benefit) for income taxes, further
adjusted to add back interest on trade accounts receivable. The
Company excludes the items listed above from net income (loss) in
arriving at Adjusted EBITDA because these amounts can vary
substantially from company to company within the energy service
industry depending upon accounting methods and book values of
assets, capital structures and the method by which the assets were
acquired. Adjusted EBITDA should not be considered as an
alternative to, or more meaningful than, net income (loss) or cash
flows from operating activities as determined in accordance with
GAAP or as an indicator of Mammoth's operating performance or
liquidity. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company's
financial performance, such as a company's cost of capital and tax
structure, as well as the historic costs of depreciable assets.
Mammoth's computations of Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies. The Company
believes that Adjusted EBITDA is a widely followed measure of
operating performance and may also be used by investors to measure
its ability to meet debt service requirements.
|
|
The following tables
provide a reconciliation of Adjusted EBITDA to the GAAP financial
measure of net income (loss) on a consolidated basis and for each
of the Company's segments (in thousands):
|
|
Consolidated
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
Adjusted EBITDA to net (loss) income:
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net (loss)
income
|
$
|
(40,901)
|
|
|
$
|
3,430
|
|
|
$
|
(34,790)
|
|
|
$
|
(88,131)
|
|
|
$
|
(95,746)
|
|
Depreciation,
depletion, amortization and accretion expense
|
19,148
|
|
|
23,132
|
|
|
20,265
|
|
|
60,559
|
|
|
73,130
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,973
|
|
Impairment of other
long-lived assets
|
547
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|
12,897
|
|
Public offering
costs
|
13
|
|
|
—
|
|
|
77
|
|
|
91
|
|
|
—
|
|
Stock based
compensation
|
252
|
|
|
353
|
|
|
354
|
|
|
950
|
|
|
1,598
|
|
Interest expense,
net
|
1,484
|
|
|
1,098
|
|
|
1,169
|
|
|
3,878
|
|
|
4,207
|
|
Other (income)
expense, net
|
(11,056)
|
|
|
(9,042)
|
|
|
14,998
|
|
|
(5,489)
|
|
|
(25,721)
|
|
Benefit for income
taxes
|
(7,187)
|
|
|
(6,193)
|
|
|
(16,560)
|
|
|
(26,370)
|
|
|
(8,979)
|
|
Interest on trade
accounts receivable
|
7,963
|
|
|
9,285
|
|
|
9,017
|
|
|
25,138
|
|
|
26,052
|
|
Adjusted
EBITDA
|
$
|
(29,737)
|
|
|
$
|
22,063
|
|
|
$
|
(5,470)
|
|
|
$
|
(28,827)
|
|
|
$
|
42,411
|
|
Infrastructure
Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
Adjusted EBITDA to net (loss) income:
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net (loss)
income
|
$
|
(2,288)
|
|
|
$
|
6,123
|
|
|
$
|
(23,715)
|
|
|
$
|
(29,946)
|
|
|
$
|
(6,182)
|
|
Depreciation and
amortization expense
|
4,933
|
|
|
7,294
|
|
|
5,899
|
|
|
17,499
|
|
|
22,416
|
|
Public offering
costs
|
(7)
|
|
|
—
|
|
|
43
|
|
|
37
|
|
|
—
|
|
Stock based
compensation
|
96
|
|
|
139
|
|
|
158
|
|
|
388
|
|
|
424
|
|
Interest
expense
|
971
|
|
|
623
|
|
|
656
|
|
|
2,287
|
|
|
2,091
|
|
Other (income)
expense, net
|
(9,256)
|
|
|
(8,375)
|
|
|
15,904
|
|
|
(2,663)
|
|
|
(24,082)
|
|
Provision (benefit)
for income taxes
|
3,947
|
|
|
1,645
|
|
|
(8,838)
|
|
|
(2,463)
|
|
|
5,085
|
|
Interest on trade
accounts receivable
|
9,290
|
|
|
8,170
|
|
|
9,017
|
|
|
26,980
|
|
|
23,796
|
|
Adjusted
EBITDA
|
$
|
7,686
|
|
|
$
|
15,619
|
|
|
$
|
(876)
|
|
|
$
|
12,119
|
|
|
$
|
23,548
|
|
Well Completion
Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
Adjusted EBITDA to net (loss) income:
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net (loss)
income
|
$
|
(40,711)
|
|
|
$
|
799
|
|
|
$
|
(8,249)
|
|
|
$
|
(53,391)
|
|
|
$
|
(50,951)
|
|
Depreciation and
amortization expense
|
6,538
|
|
|
7,189
|
|
|
6,447
|
|
|
19,668
|
|
|
23,346
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,406
|
|
Impairment of other
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,203
|
|
Public offering
costs
|
19
|
|
|
—
|
|
|
12
|
|
|
31
|
|
|
—
|
|
Stock based
compensation
|
95
|
|
|
76
|
|
|
75
|
|
|
253
|
|
|
458
|
|
Interest
expense
|
215
|
|
|
253
|
|
|
219
|
|
|
688
|
|
|
857
|
|
Other expense
(income), net
|
755
|
|
|
(1,156)
|
|
|
1
|
|
|
1,196
|
|
|
(2,444)
|
|
Interest on trade
accounts receivable
|
(1,327)
|
|
|
1,073
|
|
|
—
|
|
|
(1,841)
|
|
|
2,206
|
|
Adjusted
EBITDA
|
$
|
(34,416)
|
|
|
$
|
8,234
|
|
|
$
|
(1,495)
|
|
|
$
|
(33,396)
|
|
|
$
|
31,081
|
|
Natural Sand
Proppant Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
Adjusted EBITDA to net loss:
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net loss
|
$
|
(4,611)
|
|
|
$
|
(3,741)
|
|
|
$
|
(3,929)
|
|
|
$
|
(9,186)
|
|
|
$
|
(12,415)
|
|
Depreciation,
depletion, amortization and accretion expense
|
2,533
|
|
|
2,700
|
|
|
2,387
|
|
|
7,059
|
|
|
7,380
|
|
Public offering
costs
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
Stock based
compensation
|
32
|
|
|
77
|
|
|
65
|
|
|
163
|
|
|
354
|
|
Interest
expense
|
107
|
|
|
70
|
|
|
90
|
|
|
291
|
|
|
217
|
|
Other income
(expense), net
|
(46)
|
|
|
1,792
|
|
|
(53)
|
|
|
(892)
|
|
|
1,753
|
|
Interest on trade
accounts receivable
|
—
|
|
|
26
|
|
|
—
|
|
|
(1)
|
|
|
26
|
|
Adjusted
EBITDA
|
$
|
(1,985)
|
|
|
$
|
924
|
|
|
$
|
(1,428)
|
|
|
$
|
(2,554)
|
|
|
$
|
(2,685)
|
|
Drilling
Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
Adjusted EBITDA to net loss:
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net loss
|
$
|
(2,579)
|
|
|
$
|
(3,508)
|
|
|
$
|
(2,826)
|
|
|
$
|
(8,717)
|
|
|
$
|
(13,676)
|
|
Depreciation
expense
|
1,942
|
|
|
2,294
|
|
|
2,079
|
|
|
6,185
|
|
|
7,814
|
|
Impairment of other
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
326
|
|
Acquisition related
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Public offering
costs
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
Stock based
compensation
|
6
|
|
|
38
|
|
|
28
|
|
|
71
|
|
|
166
|
|
Interest
expense
|
56
|
|
|
60
|
|
|
58
|
|
|
177
|
|
|
449.501
|
|
Other (income)
expense, net
|
(66)
|
|
|
20
|
|
|
(127)
|
|
|
(201)
|
|
|
(251)
|
|
Adjusted
EBITDA
|
$
|
(641)
|
|
|
$
|
(1,096)
|
|
|
$
|
(786)
|
|
|
$
|
(2,483)
|
|
|
$
|
(5,171)
|
|
Other
Services(a)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net income
(loss)
|
$
|
9,288
|
|
|
$
|
3,756
|
|
|
$
|
3,929
|
|
|
$
|
13,109
|
|
|
$
|
(12,522)
|
|
Depreciation,
amortization and accretion expense
|
3,202
|
|
|
3,655
|
|
|
3,453
|
|
|
10,148
|
|
|
12,174
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,567
|
|
Impairment of other
long-lived assets
|
547
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|
8,368
|
|
Public offering
costs
|
1
|
|
|
—
|
|
|
8
|
|
|
9
|
|
|
—
|
|
Stock based
compensation
|
23
|
|
|
23
|
|
|
28
|
|
|
75
|
|
|
196
|
|
Interest expense,
net
|
135
|
|
|
92
|
|
|
146
|
|
|
435
|
|
|
592
|
|
Other (income)
expense, net
|
(2,443)
|
|
|
(1,323)
|
|
|
(727)
|
|
|
(2,929)
|
|
|
(697)
|
|
Benefit for income
taxes
|
(11,134)
|
|
|
(7,838)
|
|
|
(7,722)
|
|
|
(23,907)
|
|
|
(14,064)
|
|
Interest on trade
accounts receivable
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
25
|
|
Adjusted
EBITDA
|
$
|
(381)
|
|
|
$
|
(1,619)
|
|
|
$
|
(885)
|
|
|
$
|
(2,513)
|
|
|
$
|
(4,361)
|
|
|
|
a.
|
Includes results for
Mammoth's aviation, coil tubing, pressure control, equipment
rentals, crude oil hauling, full-service transportation and remote
accommodations, equipment manufacturing and infrastructure
engineering and design services and corporate related activities.
The Company's corporate related activities do not generate
revenue.
|
Adjusted Net (Loss) Income and Adjusted (Loss) Income per
Share
Adjusted net (loss) income and adjusted basic and diluted (loss)
income per share are supplemental non-GAAP financial measures that
are used by management to evaluate the Company's operating and
financial performance. Management believes these measures provide
meaningful information about the Company's performance by excluding
certain non-cash charges, such as impairment of goodwill and
impairment of other long-lived assets, that may not be indicative
of the Company's ongoing operating results. Adjusted net loss and
adjusted loss per share should not be considered in isolation or as
a substitute for net loss and loss per share prepared in accordance
with GAAP and may not be comparable to other similarly titled
measures of other companies. The following tables provide a
reconciliation of adjusted net loss and adjusted loss per share to
the GAAP financial measures of net loss and loss per share for the
periods specified.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
(in thousands,
except per share amounts)
|
Net (loss) income, as
reported
|
$
|
(40,901)
|
|
|
$
|
3,430
|
|
|
$
|
(34,790)
|
|
|
$
|
(88,131)
|
|
|
$
|
(95,746)
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,973
|
|
Impairment of other
long-lived assets
|
547
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|
12,897
|
|
Adjusted net (loss)
income
|
$
|
(40,354)
|
|
|
$
|
3,430
|
|
|
$
|
(34,790)
|
|
|
$
|
(87,584)
|
|
|
$
|
(27,876)
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income
per share, as reported
|
$
|
(0.88)
|
|
|
$
|
0.07
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.90)
|
|
|
$
|
(2.10)
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.21
|
|
Impairment of other
long-lived assets
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.28
|
|
Adjusted basic (loss)
income per share
|
$
|
(0.87)
|
|
|
$
|
0.07
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.89)
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per share, as reported
|
$
|
(0.88)
|
|
|
$
|
0.07
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.90)
|
|
|
$
|
(2.10)
|
|
Impairment of
goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.21
|
|
Impairment of other
long-lived assets
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.28
|
|
Adjusted diluted
(loss) income per share
|
$
|
(0.87)
|
|
|
$
|
0.07
|
|
|
$
|
(0.75)
|
|
|
$
|
(1.89)
|
|
|
$
|
(0.61)
|
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-third-quarter-2021-operational-and-financial-results-301417397.html
SOURCE Mammoth Energy Services, Inc.