ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the
“Company”) today announced first quarter of 2023 results.
Revenue was $948.3 million, net income attributable to ChampionX
was $63.5 million, and adjusted EBITDA was $175.6 million. Income
before income taxes margin was 9.7% and adjusted EBITDA margin was
18.5%. Cash from operating activities was $92.4 million and free
cash flow was $69.4 million.
CEO Commentary
“The first quarter demonstrated the strength and resiliency of
our ChampionX portfolio as we delivered adjusted EBITDA margin
expansion, generated strong free cash flow, and returned excess
capital to our shareholders. This was the direct result of our
employees around the world consistently serving our customers well,
and I am grateful to them for their dedication to our corporate
purpose of improving lives,” ChampionX’s President and Chief
Executive Officer Sivasankaran “Soma” Somasundaram said.
“During the first quarter of 2023, we generated revenue of $948
million, which increased 10% year-over-year. Revenue declined 4%
sequentially, driven by a typical seasonal decline in international
operations, partially offset by higher volumes in the North
American market. All four segments recorded sequential growth in
North America. Digital revenue grew 6% sequentially and 32%
year-over-year, driven by strong customer adoption of our
fit-for-purpose digital solutions. We generated net income
attributable to ChampionX of $64 million, which increased 73%
year-over-year and decreased 6% sequentially, and adjusted EBITDA
of $176 million, which increased 41% year-over-year and declined 2%
sequentially. Our continued focus on margin expansion is delivering
sustainable results. Our adjusted EBITDA margin expanded by
approximately 410 basis points year-over-year and 40 basis points
sequentially in the first quarter, as productivity improvements and
increased pricing realization offset the impact of seasonally lower
sales volumes.
“Cash flow from operating activities was $92 million during the
first quarter, and we generated free cash flow of $69 million
during the period, which represented 39% of our adjusted EBITDA for
the period. Cash flow was strong and above typical first quarter
patterns given strong operating discipline and working capital
management. Through our regular cash dividend of $15 million and
$40 million of ChampionX share repurchases, we returned 80% of our
free cash flow in the first quarter to our shareholders and we
remain committed to return at least 60% of free cash flow to
shareholders through-the-cycle. We also maintain a strong balance
sheet and robust liquidity, ending the first quarter with $915
million of liquidity, including $248 million of cash and $667
million of available capacity on our revolving credit facility.
“As we look to the second quarter, we expect a seasonal rebound
in our international businesses and continued positive momentum in
our shorter-cycle North American businesses. We are already seeing
good volume pick-up in international markets in the month of April.
On a consolidated basis, in the second quarter, we expect revenue
to be between $970 million and $1.0 billion. We expect adjusted
EBITDA of $182 million to $190 million. We continue to remain
focused on driving margin expansion and we expect our adjusted
EBITDA margin to progressively improve through the year, and we now
expect to deliver an exit rate of greater than 20% in the fourth
quarter of this year. We expect our 2023 cash generation to be
strong, converting at least 50% of our adjusted EBITDA to free cash
flow, and we remain committed to returning at least 60% of our free
cash flow to our shareholders during the year.
“We continue to see constructive demand tailwinds in our
businesses that support a favorable multi-year outlook for our
sector, even in the face of a more uneven broader macro
environment. Given the resiliency of our production-oriented
business portfolio and the importance of producing assets to
customers, along with our industry-leading technology and services,
we are confident that we will continue to deliver solid revenue and
bottom-line growth, adjusted EBITDA margin expansion and strong
cash generation as this multi-year energy up-cycle progresses. We
remain committed to creating value for our shareholders through a
disciplined capital allocation framework, which includes
high-return organic investment and returning cash to shareholders.
Our differentiated technology and innovation capabilities uniquely
position ChampionX to help our customers maximize the value of
their producing assets in sustainable and cost-effective ways, and
I am thankful to lead such a talented and motivated team.”
Production Chemical Technologies
Production Chemical Technologies revenue in the first quarter of
2023 was $591.7 million, a decrease of $44.9 million, or 7%,
sequentially, due to declines internationally, offset partially by
higher volumes in the U.S.
Segment operating profit was $66.3 million and adjusted segment
EBITDA was $105.1 million. Segment operating profit margin was
11.2%, a decrease of 394 basis points, sequentially, and adjusted
segment EBITDA margin was 17.8%, a decrease of 127 basis points,
sequentially. The decrease in segment operating profit margin and
adjusted segment EBITDA margin reflects the decline in
international revenue noted above, driven primarily by typical
seasonality. Additionally, the sequential results were impacted by
a one-time $13.0 million charge to write down the assets of the
Chemical Technologies Russia Business.
Production & Automation Technologies
Production & Automation Technologies revenue in the first
quarter of 2023 was $251.5 million, an increase of $7.4 million, or
3%, sequentially, due to higher demand in our North American
businesses.
Revenue from digital products was $57.6 million in the first
quarter of 2023, up 6% sequentially, and up 32% year-over-year.
Segment operating profit was $34.8 million and adjusted segment
EBITDA was $59.8 million. Segment operating profit margin was
13.8%, an increase of 642 basis points, sequentially, and adjusted
segment EBITDA margin was 23.8%, an increase of 305 basis points,
sequentially. The increase in adjusted EBITDA margin was driven by
higher sales volumes, favorable cost variances and product mix, and
productivity improvements.
Drilling Technologies
Drilling Technologies revenue in the first quarter of 2023 was
$56.7 million, an increase of $2.9 million, or 5%, sequentially,
driven by increased sales volumes of our diamond cutters and
diamond bearings products.
Segment operating profit was $11.9 million and adjusted segment
EBITDA was $13.5 million. Segment operating profit margin was
21.0%, an increase of 344 basis points, sequentially, and adjusted
segment EBITDA margin was 23.7%, an increase of 330 basis points,
sequentially, in each case due to increased volumes and lower costs
associated with serving customers.
Reservoir Chemical Technologies
Reservoir Chemical Technologies revenue in the first quarter
2023 was $25.8 million, flat sequentially.
Segment operating profit was $2.0 million and adjusted segment
EBITDA was $4.0 million. Segment operating profit margin was 7.7%,
as compared to a segment operating loss margin of 65.7% in the
prior quarter, primarily due to the fourth quarter of 2022 being
negatively impacted by a goodwill impairment charge of $39.6
million. Adjusted segment EBITDA margin was 15.5%, an increase of
212 basis points, sequentially.
Q1 2023 Other Business Highlights
- During the first quarter, ChampionX announced that its Board of
Directors increased the regular quarterly dividend to $0.085 per
share of common stock, a 13 percent increase.
- ChampionX was awarded a minimum five-year contract extension
for production chemicals and services with a supermajor IOC in
Southeast Asia. Key to winning the award was the high degree of
collaboration and integration between the operator and ChampionX,
cemented by our 15-year track record of safe and reliable
operations, while also consistently delivering superior value
through innovation and continuous improvement.
- Our Chemical Technologies Midstream team was awarded several
UltraFab units associated with a new gas plant in East Texas, as
well as for upgrades to existing plants.
- Production & Automation Technologies achieved a record
installation quarter for ESP technology, with over half of the
quarterly installs coming from new technologies introduced into the
market over the last two years.
- Production & Automation Technologies Digital revenue grew
6% sequentially and 32% year-over-year, led by SmartenTM well-site
automation and control, XSPOCTM production optimization suite and
downhole sensing technology.
- Production & Automation Technologies secured a full suite
chemical dosing tender in the Middle East with IchemTM dosing and
control skids, chemistry and services that significantly extend
mean time between failure for ESP, PCP and rod lifted wells.
- Drilling Technologies continues to see strong demand for our
differentiated diamond bearings technology.
- Drilling Technologies reported strong adoption of new
technologies in Q1 across all of their customers.
Conference Call Details
ChampionX Corporation will host a conference call on Tuesday,
April 25, 2023, to discuss its first quarter 2023 financial results
and outlook. The call will begin at 10:00 a.m. Eastern Time.
Presentation materials that supplement the conference call will be
available on ChampionX’s website at investors.championx.com.
To listen to the call via a live webcast, please visit
ChampionX’s website at investor.championx.com. The call will also
be available by dialing 1-888-396-8049 in the United States or
1-416-764-8646 for international calls. Please call approximately
15 minutes prior to the scheduled start time and reference
ChampionX conference call number 40158679.
A replay of the conference call will be available for 30 days on
ChampionX’s website.
About Non-GAAP Measures
In addition to financial results determined in accordance with
generally accepted accounting principles in the United States
(“GAAP”), this news release presents non-GAAP financial measures.
Management believes that adjusted EBITDA, adjusted EBITDA margin,
adjusted segment EBITDA, adjusted segment EBITDA margin, adjusted
net income attributable to ChampionX and adjusted diluted earnings
per share attributable to ChampionX, provide useful information to
investors regarding the Company’s financial condition and results
of operations because they reflect the core operating results of
our businesses and help facilitate comparisons of operating
performance across periods. In addition, free cash flow, free cash
flow to adjusted EBITDA ratio, and free cash flow to revenue ratio
provide useful information to investors because they reflect the
core operating results of our businesses and help facilitate
comparisons of operating performance across periods. In addition,
these measures are used by management to measure our ability to
generate positive cash flow for debt reduction and to support our
strategic objectives. Although management believes the
aforementioned non-GAAP financial measures are good tools for
internal use and the investment community in evaluating ChampionX’s
overall financial performance, the foregoing non-GAAP financial
measures should be considered in addition to, not as a substitute
for or superior to, other measures of financial performance
prepared in accordance with GAAP. A reconciliation of these
non-GAAP measures to the most directly comparable GAAP measures is
included in the accompanying financial tables.
This press release contains certain forward-looking non-GAAP
financial measures, including adjusted EBITDA. The Company has not
provided projected net income attributable to ChampionX or a
reconciliation of projected adjusted EBITDA. Management cannot
predict with a reasonable degree of accuracy certain of the
necessary components of net income attributable to ChampionX, such
as depreciation and amortization expense. As such, a reconciliation
of projected adjusted EBITDA to projected net income attributable
to ChampionX is not available without unreasonable effort. The
actual amount of depreciation and amortization, in particular, and
other amounts excluded from adjusted EBITDA will have a significant
impact on net income attributable to ChampionX.
About ChampionX
ChampionX is a global leader in chemistry solutions, artificial
lift systems, and highly engineered equipment and technologies that
help companies drill for and produce oil and gas safely,
efficiently, and sustainably around the world. ChampionX’s
expertise, innovative products, and digital technologies provide
enhanced oil and gas production, transportation, and real-time
emissions monitoring throughout the lifecycle of a well. To learn
more about ChampionX, visit our website at www.championX.com.
Forward-Looking Statements
This news release contains statements relating to future actions
and results, which are "forward-looking statements" within the
meaning of the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements
relate to, among other things, ChampionX's market position and
growth opportunities. Forward-looking statements include
statements related to ChampionX’s expectations regarding the
performance of the business, financial results, liquidity and
capital resources of ChampionX. Forward-looking statements are
subject to inherent risks and uncertainties that could cause actual
results to differ materially from current expectations, including,
but not limited to, changes in economic, competitive, strategic,
technological, tax, regulatory or other factors that affect the
operations of ChampionX’s businesses. You are encouraged to refer
to the documents that ChampionX files from time to time with the
Securities and Exchange Commission (“SEC”), including the “Risk
Factors” in ChampionX’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2022, and in ChampionX’s other filings with
the SEC. Readers are cautioned not to place undue reliance on
ChampionX’s forward-looking statements. Forward-looking statements
speak only as of the day they are made and ChampionX
undertakes no obligation to update any forward-looking statement,
except as required by applicable law.
Investor Contact: Byron
Popebyron.pope@championx.com281-602-0094
Media Contact: John
Breedjohn.breed@championx.com281-403-5751
CHAMPIONX CORPORATIONCONDENSED
CONSOLIDATED STATEMENTS OF
INCOME(UNAUDITED)
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
Revenue |
$ |
948,347 |
|
|
$ |
985,855 |
|
|
$ |
865,960 |
Cost of goods and services |
|
664,992 |
|
|
|
703,232 |
|
|
|
658,350 |
Gross
profit |
|
283,355 |
|
|
|
282,623 |
|
|
|
207,610 |
Costs and expenses: |
|
|
|
|
|
Selling, general and administrative expense |
|
160,816 |
|
|
|
146,835 |
|
|
|
150,360 |
Goodwill impairment |
|
— |
|
|
|
39,617 |
|
|
|
— |
Loss on disposal groups |
|
12,965 |
|
|
|
1,978 |
|
|
|
— |
Interest expense, net |
|
12,466 |
|
|
|
11,622 |
|
|
|
11,363 |
Other expense (income), net |
|
5,295 |
|
|
|
(4,706 |
) |
|
|
1,320 |
Income before income
taxes |
|
91,813 |
|
|
|
87,277 |
|
|
|
44,567 |
Provision for income taxes |
|
28,669 |
|
|
|
21,008 |
|
|
|
6,394 |
Net income |
|
63,144 |
|
|
|
66,269 |
|
|
|
38,173 |
Net income (loss) attributable to noncontrolling interest |
|
(388 |
) |
|
|
(1,588 |
) |
|
|
1,471 |
Net income attributable
to ChampionX |
$ |
63,532 |
|
|
$ |
67,857 |
|
|
$ |
36,702 |
|
|
|
|
|
|
Earnings per share attributable
to ChampionX: |
|
|
|
|
|
Basic |
$ |
0.32 |
|
|
$ |
0.34 |
|
|
$ |
0.18 |
Diluted |
$ |
0.31 |
|
|
$ |
0.33 |
|
|
$ |
0.18 |
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
Basic |
|
198,286 |
|
|
|
199,232 |
|
|
|
203,079 |
Diluted |
|
202,440 |
|
|
|
204,389 |
|
|
|
208,850 |
CHAMPIONX CORPORATIONCONDENSED
CONSOLIDATED BALANCE
SHEETS(UNAUDITED)
(in
thousands) |
March 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
247,996 |
|
|
$ |
250,187 |
|
Receivables, net |
|
539,380 |
|
|
|
601,061 |
|
Inventories, net |
|
591,788 |
|
|
|
542,543 |
|
Prepaid expenses and other current assets |
|
89,334 |
|
|
|
104,790 |
|
Total current assets |
|
1,468,498 |
|
|
|
1,498,581 |
|
|
|
|
|
Property, plant and equipment,
net |
|
739,853 |
|
|
|
734,810 |
|
Goodwill |
|
666,689 |
|
|
|
679,488 |
|
Intangible assets, net |
|
286,888 |
|
|
|
305,010 |
|
Other non-current assets |
|
165,408 |
|
|
|
169,594 |
|
Total
assets |
$ |
3,327,336 |
|
|
$ |
3,387,483 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Current portion of long-term debt |
$ |
6,250 |
|
|
$ |
6,250 |
|
Accounts payable |
|
539,166 |
|
|
|
469,566 |
|
Other current liabilities |
|
295,591 |
|
|
|
383,160 |
|
Total current liabilities |
|
841,007 |
|
|
|
858,976 |
|
|
|
|
|
Long-term debt |
|
595,938 |
|
|
|
621,702 |
|
Other long-term liabilities |
|
220,222 |
|
|
|
229,590 |
|
Stockholders’ equity: |
|
|
|
ChampionX stockholders’ equity |
|
1,688,707 |
|
|
|
1,694,550 |
|
Noncontrolling interest |
|
(18,538 |
) |
|
|
(17,335 |
) |
Total liabilities and
equity |
$ |
3,327,336 |
|
|
$ |
3,387,483 |
|
CHAMPIONX CORPORATIONCONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED)
|
Three Months Ended March 31, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
63,144 |
|
|
$ |
38,173 |
|
Depreciation and amortization |
|
56,710 |
|
|
|
57,699 |
|
Loss on disposal group |
|
12,965 |
|
|
|
— |
|
Deferred income taxes |
|
(8,441 |
) |
|
|
(7,788 |
) |
Gain on disposal of fixed assets |
|
(534 |
) |
|
|
(5,070 |
) |
Receivables |
|
62,673 |
|
|
|
(73,262 |
) |
Inventories |
|
(63,139 |
) |
|
|
(81,283 |
) |
Accounts payable |
|
40,708 |
|
|
|
27,184 |
|
Accrued expenses and other liabilities |
|
(39,051 |
) |
|
|
28,746 |
|
Leased assets |
|
(9,830 |
) |
|
|
(5,265 |
) |
Other |
|
(22,827 |
) |
|
|
(22,259 |
) |
Net cash flows
provided by (used for) operating activities |
|
92,378 |
|
|
|
(43,125 |
) |
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
|
(26,530 |
) |
|
|
(30,597 |
) |
Proceeds from sale of fixed assets |
|
3,505 |
|
|
|
12,731 |
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
(3,198 |
) |
Net cash used for
investing activities |
|
(23,025 |
) |
|
|
(21,064 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Repayment of long-term debt |
|
(26,563 |
) |
|
|
(6,713 |
) |
Repurchases of common stock |
|
(40,428 |
) |
|
|
— |
|
Dividends paid |
|
(15,011 |
) |
|
|
— |
|
Other |
|
10,895 |
|
|
|
(3,085 |
) |
Net cash used for
financing activities |
|
(71,107 |
) |
|
|
(9,798 |
) |
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash |
|
(437 |
) |
|
|
(582 |
) |
|
|
|
|
Net decrease in cash
and cash equivalents and restricted cash |
|
(2,191 |
) |
|
|
(74,569 |
) |
Cash and cash equivalents and
restricted cash at beginning of period |
|
250,187 |
|
|
|
255,178 |
|
Cash and cash
equivalents and restricted cash at end of period |
$ |
247,996 |
|
|
$ |
180,609 |
|
CHAMPIONX CORPORATIONBUSINESS SEGMENT
DATA(UNAUDITED)
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Segment
revenue: |
|
|
|
|
|
Production Chemical
Technologies |
$ |
591,684 |
|
|
$ |
636,539 |
|
|
$ |
514,972 |
|
Production & Automation
Technologies |
|
251,548 |
|
|
|
244,181 |
|
|
|
220,349 |
|
Drilling Technologies |
|
56,707 |
|
|
|
53,797 |
|
|
|
56,859 |
|
Reservoir Chemical
Technologies |
|
25,806 |
|
|
|
25,698 |
|
|
|
39,900 |
|
Corporate and other |
|
22,602 |
|
|
|
25,640 |
|
|
|
33,880 |
|
Total revenue |
$ |
948,347 |
|
|
$ |
985,855 |
|
|
$ |
865,960 |
|
|
|
|
|
|
|
Income
before income taxes: |
|
|
|
|
Segment operating
profit (loss): |
|
|
|
|
|
Production Chemical
Technologies |
$ |
66,314 |
|
|
$ |
96,418 |
|
|
$ |
31,263 |
|
Production & Automation
Technologies |
|
34,792 |
|
|
|
18,104 |
|
|
|
24,710 |
|
Drilling Technologies |
|
11,887 |
|
|
|
9,426 |
|
|
|
15,220 |
|
Reservoir Chemical
Technologies |
|
1,987 |
|
|
|
(16,884 |
) |
|
|
(3,469 |
) |
Total segment operating profit |
|
114,980 |
|
|
|
107,064 |
|
|
|
67,724 |
|
Corporate and other |
|
10,701 |
|
|
|
8,165 |
|
|
|
11,794 |
|
Interest expense, net |
|
12,466 |
|
|
|
11,622 |
|
|
|
11,363 |
|
Income before income taxes |
$ |
91,813 |
|
|
$ |
87,277 |
|
|
$ |
44,567 |
|
|
|
|
|
|
|
Operating profit
margin / income before income taxes margin: |
|
|
|
|
|
Production Chemical
Technologies |
|
11.2 |
% |
|
|
15.1 |
% |
|
|
6.1 |
% |
Production & Automation
Technologies |
|
13.8 |
% |
|
|
7.4 |
% |
|
|
11.2 |
% |
Drilling Technologies |
|
21.0 |
% |
|
|
17.5 |
% |
|
|
26.8 |
% |
Reservoir Chemical
Technologies |
|
7.7 |
% |
|
|
(65.7 |
)% |
|
|
(8.7 |
)% |
ChampionX Consolidated |
|
9.7 |
% |
|
|
8.9 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
Production Chemical
Technologies |
$ |
105,060 |
|
|
$ |
121,092 |
|
|
$ |
66,876 |
|
Production & Automation
Technologies |
|
59,814 |
|
|
|
50,620 |
|
|
|
45,006 |
|
Drilling Technologies |
|
13,463 |
|
|
|
10,998 |
|
|
|
17,319 |
|
Reservoir Chemical
Technologies |
|
3,999 |
|
|
|
3,437 |
|
|
|
(250 |
) |
Corporate and other |
|
(6,729 |
) |
|
|
(7,311 |
) |
|
|
(4,123 |
) |
Adjusted EBITDA |
$ |
175,607 |
|
|
$ |
178,836 |
|
|
$ |
124,828 |
|
|
|
|
|
|
|
Adjusted EBITDA
margin |
|
|
|
|
|
Production Chemical
Technologies |
|
17.8 |
% |
|
|
19.0 |
% |
|
|
13.0 |
% |
Production & Automation
Technologies |
|
23.8 |
% |
|
|
20.7 |
% |
|
|
20.4 |
% |
Drilling Technologies |
|
23.7 |
% |
|
|
20.4 |
% |
|
|
30.5 |
% |
Reservoir Chemical
Technologies |
|
15.5 |
% |
|
|
13.4 |
% |
|
|
(0.6 |
)% |
ChampionX Consolidated |
|
18.5 |
% |
|
|
18.1 |
% |
|
|
14.4 |
% |
CHAMPIONX CORPORATIONRECONCILIATIONS OF
GAAP TO NON-GAAP FINANCIAL
MEASURES(UNAUDITED)
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Net income attributable
to ChampionX |
$ |
63,532 |
|
|
$ |
67,857 |
|
|
$ |
36,702 |
|
Pre-tax adjustments: |
|
|
|
|
|
Loss on disposal group(1) |
|
12,965 |
|
|
|
1,978 |
|
|
|
— |
|
Russia sanctions compliance and impacts(2) |
|
521 |
|
|
|
(2,909 |
) |
|
|
— |
|
Restructuring and other related charges |
|
4,399 |
|
|
|
(16,784 |
) |
|
|
9,107 |
|
Goodwill impairment |
|
— |
|
|
|
39,617 |
|
|
|
— |
|
Merger integration costs |
|
245 |
|
|
|
1,001 |
|
|
|
5,241 |
|
Acquisition costs and related adjustments(3) |
|
(3,512 |
) |
|
|
(7,112 |
) |
|
|
(3,512 |
) |
Intellectual property defense |
|
— |
|
|
|
27 |
|
|
|
363 |
|
Tax impact of adjustments |
|
(4,561 |
) |
|
|
3,848 |
|
|
|
(2,352 |
) |
Adjusted net income
attributable to ChampionX |
|
73,589 |
|
|
|
87,523 |
|
|
|
45,549 |
|
Tax impact of adjustments |
|
4,561 |
|
|
|
(3,848 |
) |
|
|
2,352 |
|
Net income (loss) attributable to
noncontrolling interest |
|
(388 |
) |
|
|
(1,588 |
) |
|
|
1,471 |
|
Depreciation and
amortization |
|
56,710 |
|
|
|
64,119 |
|
|
|
57,699 |
|
Provision for income taxes |
|
28,669 |
|
|
|
21,008 |
|
|
|
6,394 |
|
Interest expense, net |
|
12,466 |
|
|
|
11,622 |
|
|
|
11,363 |
|
Adjusted
EBITDA |
$ |
175,607 |
|
|
$ |
178,836 |
|
|
$ |
124,828 |
|
_______________________
(1) Amounts represent the loss recorded to properly adjust the
carrying value of our CT Russia Business to the lower of carrying
value or fair value less costs to sell. (2) Includes charges
incurred related to legal and professional fees to comply with, as
well as additional foreign currency exchange losses associated
with, the sanctions imposed in Russia.(3) Includes
revenue associated with the amortization of a liability established
as part of the Merger, representing unfavorable terms under the
Cross Supply Agreement, as well as costs incurred for the
acquisition of businesses.
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Diluted earnings per
share attributable to ChampionX |
$ |
0.31 |
|
|
$ |
0.33 |
|
|
$ |
0.18 |
|
Per share adjustments: |
|
|
|
|
|
Loss on disposal group |
|
0.06 |
|
|
|
0.01 |
|
|
|
— |
|
Russia sanctions compliance and impacts |
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Restructuring and other related charges |
|
0.03 |
|
|
|
(0.08 |
) |
|
|
0.04 |
|
Goodwill impairment |
|
— |
|
|
|
0.19 |
|
|
|
— |
|
Merger integration costs |
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Acquisition costs and related adjustments |
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
Intellectual property defense |
|
— |
|
|
|
— |
|
|
|
— |
|
Tax impact of adjustments |
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(0.01 |
) |
Adjusted diluted earnings
per share attributable to ChampionX |
$ |
0.36 |
|
|
$ |
0.43 |
|
|
$ |
0.22 |
|
CHAMPIONX CORPORATIONRECONCILIATIONS OF
GAAP TO NON-GAAP FINANCIAL MEASURES BY
SEGMENT(UNAUDITED)
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Production Chemical
Technologies |
|
|
|
|
|
Segment operating profit |
$ |
66,314 |
|
|
$ |
96,418 |
|
|
$ |
31,263 |
|
Non-GAAP adjustments |
|
14,567 |
|
|
|
1,591 |
|
|
|
11,636 |
|
Depreciation and amortization |
|
24,179 |
|
|
|
23,083 |
|
|
|
23,977 |
|
Segment adjusted EBITDA |
$ |
105,060 |
|
|
$ |
121,092 |
|
|
$ |
66,876 |
|
|
|
|
|
|
|
Production &
Automation Technologies |
|
|
|
|
|
Segment operating profit |
$ |
34,792 |
|
|
$ |
18,104 |
|
|
$ |
24,710 |
|
Non-GAAP adjustments |
|
785 |
|
|
|
3,461 |
|
|
|
(4,189 |
) |
Depreciation and amortization |
|
24,237 |
|
|
|
29,055 |
|
|
|
24,485 |
|
Segment adjusted EBITDA |
$ |
59,814 |
|
|
$ |
50,620 |
|
|
$ |
45,006 |
|
|
|
|
|
|
|
Drilling
Technologies |
|
|
|
|
|
Segment operating profit |
$ |
11,887 |
|
|
$ |
9,426 |
|
|
$ |
15,220 |
|
Non-GAAP adjustments |
|
— |
|
|
|
(7 |
) |
|
|
363 |
|
Depreciation and amortization |
|
1,576 |
|
|
|
1,579 |
|
|
|
1,736 |
|
Segment adjusted EBITDA |
$ |
13,463 |
|
|
$ |
10,998 |
|
|
$ |
17,319 |
|
|
|
|
|
|
|
Reservoir Chemical
Technologies |
|
|
|
|
|
Segment operating profit |
$ |
1,987 |
|
|
$ |
(16,884 |
) |
|
$ |
(3,469 |
) |
Non-GAAP adjustments |
|
395 |
|
|
|
15,567 |
|
|
|
743 |
|
Depreciation and amortization |
|
1,617 |
|
|
|
4,754 |
|
|
|
2,476 |
|
Segment adjusted EBITDA |
$ |
3,999 |
|
|
$ |
3,437 |
|
|
$ |
(250 |
) |
|
|
|
|
|
|
Corporate and
other |
|
|
|
|
|
Segment operating profit |
$ |
(23,167 |
) |
|
$ |
(19,787 |
) |
|
$ |
(23,157 |
) |
Non-GAAP adjustments |
|
(1,129 |
) |
|
|
(4,794 |
) |
|
|
2,646 |
|
Depreciation and amortization |
|
5,101 |
|
|
|
5,648 |
|
|
|
5,025 |
|
Interest expense, net |
|
12,466 |
|
|
|
11,622 |
|
|
|
11,363 |
|
Segment adjusted EBITDA |
$ |
(6,729 |
) |
|
$ |
(7,311 |
) |
|
$ |
(4,123 |
) |
Free Cash Flow
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Free Cash
Flow |
|
|
|
|
|
Cash flows from operating
activities |
$ |
92,378 |
|
|
$ |
195,093 |
|
|
$ |
(43,125 |
) |
Less: Capital expenditures,
net of proceeds from sale of fixed assets |
|
(23,025 |
) |
|
|
(26,463 |
) |
|
|
(17,866 |
) |
Free cash flow |
$ |
69,353 |
|
|
$ |
168,630 |
|
|
$ |
(60,991 |
) |
|
|
|
|
|
|
Cash From Operating
Activities to Revenue Ratio |
|
|
|
|
|
Cash flows from operating
activities |
$ |
92,378 |
|
|
$ |
195,093 |
|
|
$ |
(43,125 |
) |
Revenue |
$ |
948,347 |
|
|
$ |
985,855 |
|
|
$ |
865,960 |
|
|
|
|
|
|
|
Cash from operating activities
to revenue ratio |
|
10 |
% |
|
|
20 |
% |
|
|
(5 |
)% |
|
|
|
|
|
|
Free Cash Flow to
Revenue Ratio |
|
|
|
|
|
Free cash flow |
$ |
69,353 |
|
|
$ |
168,630 |
|
|
$ |
(60,991 |
) |
Revenue |
$ |
948,347 |
|
|
$ |
985,855 |
|
|
$ |
865,960 |
|
|
|
|
|
|
|
Free cash flow to revenue
ratio |
|
7 |
% |
|
|
17 |
% |
|
|
(7 |
)% |
|
|
|
|
|
|
Free Cash Flow to
Adjusted EBITDA Ratio |
|
|
|
|
|
Free cash flow |
$ |
69,353 |
|
|
$ |
168,630 |
|
|
$ |
(60,991 |
) |
Adjusted EBITDA |
$ |
175,607 |
|
|
$ |
178,836 |
|
|
$ |
124,828 |
|
|
|
|
|
|
|
Free cash flow to adjusted
EBITDA ratio |
|
39 |
% |
|
|
94 |
% |
|
|
(49 |
)% |
ChampionX (NASDAQ:CHX)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
ChampionX (NASDAQ:CHX)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024