Q4 Revenue Up 80% and Full Year Revenue
Up 58%
OKLAHOMA
CITY, Feb. 23, 2023 /PRNewswire/ --
Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ:
TUSK) today reported financial and operational results for the
fourth quarter and full year ended December 31,
2022.
Financial Overview for the Fourth Quarter and Full Year
2022:
Fourth quarter 2022 total revenue was $102.9 million, an increase of 80% compared to
$57.2 million for the same quarter of
2021. Total revenue for the full year of 2022 was $362.1 million, an increase of 58% compared to
$229.0 million in 2021.
Net income for the fourth quarter of 2022 was $4.8 million, or $0.10 per share, compared to a net loss of
$13.3 million, or a $0.28 loss per share, for the same quarter of
2021. Net loss for the full year of 2022 was $0.6 million, or $0.01 per fully diluted share, compared to net
loss of $101.4 million, or
$2.18 per fully diluted share for
2021.
Adjusted EBITDA (as defined and reconciled below) was
$24.1 million for the fourth quarter
of 2022, an increase of 40% compared to $17.2 million for the same quarter of 2021.
Adjusted EBITDA increased to $86.1
million for the full year of 2022 compared to ($11.6) million for 2021. During the fourth
quarter of 2022, Mammoth recognized bad debt expense of
$3.5 million due to a previously
disclosed legal settlement. Excluding this expense, adjusted EBITDA
would have been $27.6 million for the
fourth quarter of 2022 and $89.6
million for the full year 2022.
Arty Straehla, Chief Executive Officer of Mammoth
commented, "We are pleased to report significant revenue and
Adjusted EBITDA growth in the fourth quarter and for the full year.
This growth was driven by strong market demand for our services and
enhanced execution by our teams. Despite adverse weather during the
quarter and continued supply chain constraints that impacted
productivity, I am proud of the hard work and perseverance
displayed by our talented teams throughout our organization. Our
Well Completion Services division continues to improve performance,
generating strong growth as the macro demand in the pressure
pumping industry remains robust. We exited 2022 with
four of our six pressure pumping spreads operating, and we added a
fifth spread into operations in January of 2023. In
addition, we have plans to upgrade our sixth spread to Tier 4, dual
fuel and put it into operation in the second half of 2023 and
upgrade two existing spreads to Tier 2, dual fuel, subject to both
market conditions and supply chain constraints. This
would give us a total of four dual fuel fleets. In our
Infrastructure Services division, operational improvements, team
performance and higher utilization of crews and equipment continue
to drive enhanced results. There is a healthy bidding and pricing
environment for infrastructure projects throughout our footprint
supported by the historic federal investment in our Nation's
infrastructure through the Infrastructure Investment and Jobs Act.
Our sand business also continues to maintain strong demand and we
are pleased with our team's performance. As we reported last
November, we entered into two strategic sand supply agreements at
attractive pricing that are providing a solid foundation for
predictable cash flow in our natural sand proppant division. We
believe all of our business segments are performing well in high
demand environments despite the continued daily challenges
presented by supply chain constraints, which we expect to persist
through at least the first half of 2023, inflation and higher labor
costs. We are bullish on the future of Mammoth and
intend to continue to focus on improving operational efficiencies
across our business segments and driving financial performance to
enhance value for our shareholders."
Commenting further, Straehla said, "As we continue to
vigorously pursue payment from the Puerto Rico Electric Power
Authority ("PREPA"), last month we reported that two important
Determination Memorandums from the Federal Emergency Management
Agency ("FEMA") released late last year affirmed the work we
completed on the island and that the majority of the costs were
eligible for reimbursement. In a January Joint Status Report filed
in PREPA's bankruptcy case, PREPA indicated that subject to
approximately $21.5 million in
offsets asserted by PREPA, approximately $99.2 million in FEMA funding would be available
to PREPA for our outstanding invoices. Both the
November and December 2022
Determination Memorandums can be found on our website. In addition,
we have sought and obtained bipartisan help from Senate and
Congressional members in pursuit of collecting the over
$379 million outstanding receivable
from PREPA as the Company continues to pursue multiple avenues to
collect the money owed from PREPA."
Well Completion Services
Mammoth's
well completion services division contributed revenue (inclusive of
inter-segment revenue) of $51.4
million on 1,837 stages for the fourth quarter of 2022,
compared to $21.3 million on 891
stages for the same quarter of 2021. On average, 3.4 of the
Company's fleets were active for the fourth quarter of 2022
compared to an average utilization of 1.6 fleets during the same
quarter of 2021.
The well completion division contributed revenues
(inclusive of inter-segment revenues) of $170.7 million on 6,149 stages for the full year
of 2022, up from $84.3 million on
2,544 stages for 2021. On average 3.0 of the Company's fleets were
active in 2022 compared to 1.1 fleets in 2021.
Infrastructure Services
Mammoth's
infrastructure services division contributed revenue of
$29.6 million for the fourth quarter
of 2022 compared to $19.7 million for
the same quarter of 2021. Average crew count grew to 93 crews
during the fourth quarter of 2022 compared to 78 crews during the
same quarter of 2021.
The infrastructure segment contributed revenues of
$111.5 million for the full year of
2022, up from $93.4 million for 2021.
The increase in revenue is primarily due to improved operational
execution, coupled with an increase in crew count. Our average crew
count grew to 91 crews for 2022 compared to 82 crews for
2021.
Natural Sand Proppant
Services
Mammoth's natural sand proppant
services division contributed revenue (inclusive of inter-segment
revenue) of $13.8 million for the
fourth quarter of 2022 compared to $10.8
million for the same quarter of 2021. In the fourth quarter
of 2022, the Company sold approximately 366,000 tons of sand at an
average sales price of $29.80 per ton
compared to sales of approximately 270,000 tons of sand at an
average sales price of $17.84 per ton
during the same quarter of 2021.
The natural sand proppant division contributed revenues
(inclusive of inter-segment revenues) of $51.4 million for the full year of 2022 compared
to $34.9 million for 2021. The
Company sold 1.4 million tons of sand during 2022, an increase from
1.0 million tons of sand during 2021. The Company's average sales
price for the sand sold during 2022 was $27.11 per ton, an increase from $16.76 per ton average sales price during
2021.
Drilling Services
Mammoth's
drilling services division contributed revenue (inclusive of
inter-segment revenue) of $2.4
million for the fourth quarter of 2022 compared to
$1.0 million for the same quarter of
2021. The drilling services division contributed revenues of
$10.4 million for the full year of
2022, compared to $4.3 million for
2021. The increase in drilling services revenue is primarily
attributable to increased utilization for our directional drilling
business.
Other Services
Mammoth's other
services, including aviation, equipment rentals, remote
accommodations and equipment manufacturing, contributed revenue
(inclusive of inter-segment revenue) of $6.4
million for the fourth quarter of 2022 compared to
$4.9 million for the same quarter of
2021. The Company's other services contributed revenues of
$23.1 million for the full year of
2022, compared to $18.5 million for
2021. The increase in revenue is primarily due to improved
utilization for our equipment rental and remote accommodations
businesses.
Selling, General and Administrative Expenses
Selling,
general and administrative ("SG&A") expenses were $13.0 million for the fourth quarter of 2022
compared to $3.5 million for the same
quarter of 2021.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
3,932
|
|
$
3,685
|
|
$
13,729
|
|
$
15,064
|
Professional
services(a)
|
3,434
|
|
(2,383)
|
|
13,501
|
|
11,400
|
Other(b)
|
1,885
|
|
1,994
|
|
8,012
|
|
9,052
|
Total cash SG&A
expense
|
9,251
|
|
3,296
|
|
35,242
|
|
35,516
|
Non-cash
expenses:
|
|
|
|
|
|
|
|
Bad debt
provision(c)
|
3,501
|
|
12
|
|
3,389
|
|
41,662
|
Stock based
compensation
|
241
|
|
241
|
|
923
|
|
1,068
|
Total non-cash
SG&A expense
|
3,742
|
|
253
|
|
4,312
|
|
42,730
|
Total SG&A
expense
|
$
12,993
|
|
$
3,549
|
|
$
39,554
|
|
$
78,246
|
a.
|
Certain legal expenses
incurred during 2021 were reclassified to Other, net during the
fourth quarter of 2021.
|
b.
|
Includes travel-related
costs, information technology expenses, rent, utilities and other
general and administrative-related costs.
|
c.
|
The bad debt provision
for the year ended December 31, 2021 includes $41.2 million related
to the settlement of our accounts with Gulfport Energy Corporation
and its subsidiaries.
|
SG&A expenses, as a percentage of total revenue, were
13% for the fourth quarter of 2022 compared to 6% for the same
quarter of 2021. Excluding bad debt expense, SG&A expenses as a
percentage of total revenue were 9% for the fourth quarter of
2022.
Liquidity
As of December 31,
2022, Mammoth had cash on hand of $17.3
million, outstanding borrowings under its revolving credit
facility of $83.5 million and
$19.7 million of available borrowing
capacity under its revolving credit facility, after giving effect
to $6.5 million of outstanding
letters of credit and the requirement to maintain a $10.0 million reserve out of the available
borrowing capacity. As of December 31, 2022, Mammoth had total
liquidity of $37.0
million.
As of February 22, 2023, Mammoth had cash on hand of
$9.5 million and outstanding
borrowings under its revolving credit facility of $79.7 million. As of February 22, 2023, the
Company had $22.3 million of
available borrowing capacity under its revolving credit facility,
after giving effect to $6.4 million
of outstanding letters of credit and the requirement to maintain a
$10.0 million reserve out of the
available borrowing capacity.
Capital Expenditures
The following table summarizes
Mammoth's capital expenditures by operating division for the
periods indicated (in thousands):
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Well completion
services(a)
|
$
3,374
|
|
$
1,135
|
|
$
11,421
|
|
$
4,327
|
Infrastructure
services(b)
|
62
|
|
153
|
|
885
|
|
627
|
Natural sand proppant
services(c)
|
54
|
|
55
|
|
88
|
|
484
|
Drilling
services(d)
|
55
|
|
1
|
|
101
|
|
44
|
Other(e)
|
120
|
|
25
|
|
395
|
|
361
|
Eliminations
|
(26)
|
|
—
|
|
(153)
|
|
—
|
Total capital
expenditures
|
$
3,639
|
|
$
1,369
|
|
$
12,737
|
|
$
5,843
|
a.
|
Capital expenditures
primarily for upgrades and maintenance to our pressure pumping
fleet for the periods presented.
|
b.
|
Capital expenditures
primarily for truck, tooling and equipment purchases 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 Thursday, February 23,
2023 at 4:00 p.m. Central time
(5:00 p.m. Eastern time) to discuss
its fourth quarter and full year 2022 financial and operational
results. The telephone number to access the conference call is
1-201-389-0872. The conference call will also be webcast live on
https://ir.mammothenergy.com/events-presentations. Please submit
any questions for management prior to the call via email to
TUSK@dennardlascar.com.
About Mammoth Energy Services, Inc.
Mammoth is an
integrated, growth-oriented energy services company focused on the
providing products and services to enable the exploration and
development of North American onshore unconventional oil and
natural gas reserves as well as the construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its infrastructure
services businesses. Mammoth's suite of services and products
include: well completion services, infrastructure 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: any continuing impacts of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions; 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; the
impact of the war in Ukraine on
the global energy and capital markets and global stability;
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; inflationary pressures; rising interest rates and
their impact on the cost of capital; 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 ("Cobra") by the Puerto Rico Electric Power
Authority ("PREPA"); the failure to receive or delays in receiving
governmental authorizations, approvals and/or payments, including
payments with respect to the PREPA account receivable for prior
services to PREPA performed by Cobra; 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, including concerns over a
potential economic slowdown or recession; impacts of the recent
federal infrastructure bill on the infrastructure industry and our
infrastructure services business; 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 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 (i) continue to comply with or, if applicable,
obtain a waiver of forecasted or actual non-compliance with certain
financial covenants from its lenders and comply with other terms
and conditions under its amended revolving credit facility, as
amended, (ii) extend, repay or refinance its revolving credit
facility at or prior to maturity on the terms acceptable to Mammoth
or at all and (iii) meet its financial projections associated with
reducing its debt; 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
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
CURRENT
ASSETS
|
|
(in
thousands)
|
Cash and cash
equivalents
|
|
$
17,282
|
|
$
9,899
|
Short-term
investment
|
|
—
|
|
1,762
|
Accounts receivable,
net
|
|
456,465
|
|
407,550
|
Receivables from
related parties, net
|
|
223
|
|
88
|
Inventories
|
|
8,883
|
|
8,366
|
Prepaid
expenses
|
|
13,219
|
|
12,381
|
Other current
assets
|
|
620
|
|
737
|
Total current
assets
|
|
496,692
|
|
440,783
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
138,066
|
|
176,586
|
Sand
reserves
|
|
61,830
|
|
64,641
|
Operating lease
right-of-use assets
|
|
10,656
|
|
12,168
|
Intangible assets,
net
|
|
1,782
|
|
2,561
|
Goodwill
|
|
11,717
|
|
11,717
|
Deferred income tax
asset
|
|
—
|
|
8,094
|
Other non-current
assets
|
|
3,935
|
|
4,342
|
Total
assets
|
|
$
724,678
|
|
$
720,892
|
LIABILITIES AND
EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts
payable
|
|
$
47,391
|
|
$
37,560
|
Accrued expenses and
other current liabilities
|
|
52,297
|
|
62,516
|
Current operating
lease liability
|
|
5,447
|
|
5,942
|
Current portion of
long-term debt
|
|
83,520
|
|
1,468
|
Income taxes
payable
|
|
48,557
|
|
42,748
|
Total current
liabilities
|
|
237,212
|
|
150,234
|
|
|
|
|
|
Long-term debt, net of
current portion
|
|
—
|
|
85,240
|
Deferred income tax
liabilities
|
|
471
|
|
865
|
Long-term operating
lease liability
|
|
4,913
|
|
5,918
|
Asset retirement
obligation
|
|
3,981
|
|
3,720
|
Other long-term
liabilities
|
|
15,485
|
|
11,693
|
Total
liabilities
|
|
262,062
|
|
257,670
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Equity:
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 47,312,270 and
46,684,065
issued and outstanding at December 31, 2022 and 2021
|
|
473
|
|
467
|
Additional paid in
capital
|
|
539,138
|
|
538,221
|
Accumulated
deficit
|
|
(73,154)
|
|
(72,535)
|
Accumulated other
comprehensive loss
|
|
(3,841)
|
|
(2,931)
|
Total
equity
|
|
462,616
|
|
463,222
|
Total liabilities and
equity
|
|
$
724,678
|
|
$
720,892
|
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in thousands,
except per share amounts)
|
REVENUE
|
|
Services
revenue
|
$
88,963
|
|
$
46,262
|
|
$
311,968
|
|
$
182,236
|
Services revenue -
related parties
|
110
|
|
104
|
|
1,133
|
|
15,782
|
Product
revenue
|
13,836
|
|
10,867
|
|
48,985
|
|
28,799
|
Product revenue -
related parties
|
—
|
|
—
|
|
—
|
|
2,145
|
Total
revenue
|
102,909
|
|
57,233
|
|
362,086
|
|
228,962
|
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation,
depletion, amortization and accretion of $11,819,
$15,953,$55,546 and $69,401, respectively, for the three
months ended December 31, 2022 and December 31, 2021
and years ended December 31, 2022 and 2021)
|
67,502
|
|
41,572
|
|
241,323
|
|
170,275
|
Services cost of
revenue - related parties (exclusive of depreciation, depletion,
amortization and accretion of $0, $0, $0 and $0, respectively, for
the three months ended December 31, 2022 and December 31, 2021 and
years ended December 31, 2022 and 2021)
|
135
|
|
134
|
|
541
|
|
531
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $2,014, $1,943, $8,725 and $8,993, respectively, for
the three months ended December 31, 2022 and December 31, 2021 and
years ended December 31, 2022 and 2021)
|
9,226
|
|
4,581
|
|
36,723
|
|
27,520
|
Selling, general and
administrative
|
12,993
|
|
3,549
|
|
39,554
|
|
77,861
|
Selling, general and
administrative - related parties
|
—
|
|
—
|
|
—
|
|
385
|
Depreciation,
depletion, amortization and accretion
|
13,786
|
|
17,916
|
|
64,271
|
|
78,475
|
Gains on disposal of
assets, net
|
(170)
|
|
(515)
|
|
(3,908)
|
|
(5,147)
|
Impairment of
goodwill
|
—
|
|
891
|
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
665
|
|
—
|
|
1,212
|
Total cost and
expenses
|
103,472
|
|
68,793
|
|
378,504
|
|
352,003
|
Operating (loss)
income
|
(563)
|
|
(11,560)
|
|
(16,418)
|
|
(123,041)
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
Interest expense,
net
|
(3,237)
|
|
(2,528)
|
|
(11,506)
|
|
(6,406)
|
Other income,
net
|
10,737
|
|
4,298
|
|
40,912
|
|
5,669
|
Other expense, net -
related parties
|
—
|
|
—
|
|
—
|
|
(515)
|
Total other income
(expense)
|
7,500
|
|
1,770
|
|
29,406
|
|
(1,252)
|
Income (loss) before
income taxes
|
6,937
|
|
(9,790)
|
|
12,988
|
|
(124,293)
|
Provision (benefit) for
income taxes
|
2,165
|
|
3,507
|
|
13,607
|
|
(22,863)
|
Net income
(loss)
|
$
4,772
|
|
$
(13,297)
|
|
$
(619)
|
|
$
(101,430)
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of tax of $0, $0, $0 and ($36),
respectively, for the three months ended December 31, 2022 and
December 31, 2021 and years ended December 31, 2022 and
2021)
|
(59)
|
|
16
|
|
(910)
|
|
134
|
Comprehensive income
(loss)
|
$
4,713
|
|
$
(13,281)
|
|
$
(1,529)
|
|
$
(101,296)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share (basic)
|
$
0.10
|
|
$
(0.28)
|
|
$
(0.01)
|
|
$
(2.18)
|
Net income (loss) per
share (diluted)
|
$
0.10
|
|
$
(0.28)
|
|
$
(0.01)
|
|
$
(2.18)
|
Weighted average number
of shares outstanding (basic)
|
47,312
|
|
46,683
|
|
47,175
|
|
46,428
|
Weighted average number
of shares outstanding (diluted)
|
47,963
|
|
46,683
|
|
47,175
|
|
46,428
|
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
2022
|
|
2021
|
|
(in
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(619)
|
|
$
(101,430)
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
Stock based
compensation
|
923
|
|
1,191
|
Depreciation,
depletion, accretion and amortization
|
64,271
|
|
78,475
|
Amortization of debt
origination costs
|
777
|
|
665
|
Bad debt (recoveries)
expense
|
3,389
|
|
41,662
|
Gains on disposal of
assets
|
(3,908)
|
|
(5,147)
|
Gains from sales of
equipment damaged or lost down-hole
|
(604)
|
|
(288)
|
Impairment of
goodwill
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
1,212
|
Deferred income
taxes
|
7,700
|
|
(32,005)
|
Other
|
(117)
|
|
280
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
net
|
(52,392)
|
|
(55,898)
|
Receivables from
related parties, net
|
(135)
|
|
28,373
|
Inventories
|
(517)
|
|
3,654
|
Prepaid expenses and
other assets
|
(710)
|
|
1,444
|
Accounts
payable
|
6,680
|
|
(2,982)
|
Accrued expenses and
other liabilities
|
(15,272)
|
|
12,380
|
Income taxes
payable
|
5,800
|
|
8,658
|
Net cash provided by
(used in) operating activities
|
15,266
|
|
(18,865)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(12,737)
|
|
(5,843)
|
Proceeds from disposal
of property and equipment
|
10,613
|
|
11,350
|
Net cash (used in)
provided by investing activities
|
(2,124)
|
|
5,507
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
long-term debt
|
197,975
|
|
73,100
|
Repayments of
long-term debt
|
(199,430)
|
|
(68,911)
|
Proceeds from
sale-leaseback transaction
|
4,589
|
|
9,473
|
Payments on
sale-leaseback transaction
|
(4,429)
|
|
(2,951)
|
Principal payments on
financing leases and equipment financing notes
|
(4,306)
|
|
(2,283)
|
Net cash (used in)
provided by financing activities
|
(5,601)
|
|
8,428
|
Effect of foreign
exchange rate on cash
|
(158)
|
|
7
|
Net change in cash and
cash equivalents
|
7,383
|
|
(4,923)
|
Cash and cash
equivalents at beginning of period
|
9,899
|
|
14,822
|
Cash and cash
equivalents at end of period
|
$
17,282
|
|
$
9,899
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
Cash paid for
interest
|
$
10,164
|
|
$
4,827
|
Cash paid for income
taxes, net of refunds received
|
$
106
|
|
$
829
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
Purchases of property
and equipment included in accounts payable
|
$
4,736
|
|
$
1,535
|
Right-of-use assets
obtained for financing lease liabilities
|
$
3,058
|
|
$
1,750
|
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME
STATEMENTS
(in
thousands)
|
|
Three months ended
December 31, 2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
51,292
|
$
29,559
|
$
13,817
|
$
2,425
|
$
5,816
|
$
—
|
$
102,909
|
Intersegment
revenues
|
147
|
—
|
25
|
—
|
570
|
(742)
|
—
|
Total
revenue
|
51,439
|
29,559
|
13,842
|
2,425
|
6,386
|
(742)
|
102,909
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
36,108
|
24,387
|
10,081
|
2,158
|
4,129
|
—
|
76,863
|
Intersegment cost of
revenues
|
475
|
23
|
—
|
109
|
133
|
(740)
|
—
|
Total cost of
revenue
|
36,583
|
24,410
|
10,081
|
2,267
|
4,262
|
(740)
|
76,863
|
Selling, general and
administrative
|
2,328
|
5,091
|
4,397
|
367
|
810
|
—
|
12,993
|
Depreciation,
depletion, amortization and accretion
|
4,140
|
3,675
|
2,015
|
1,539
|
2,417
|
—
|
13,786
|
(Gains) losses on
disposal of assets, net
|
(68)
|
—
|
1
|
113
|
(216)
|
—
|
(170)
|
Operating income
(loss)
|
8,456
|
(3,617)
|
(2,652)
|
(1,861)
|
(887)
|
(2)
|
(563)
|
Interest expense,
net
|
617
|
2,046
|
201
|
166
|
207
|
—
|
3,237
|
Other expense (income),
net
|
1
|
(10,522)
|
(4)
|
—
|
(212)
|
—
|
(10,737)
|
Income (loss) before
income taxes
|
$
7,838
|
$
4,859
|
$
(2,849)
|
$
(2,027)
|
$
(882)
|
$
(2)
|
$
6,937
|
|
|
Three months ended
December 31, 2021
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
21,251
|
$
19,714
|
$
10,849
|
$
963
|
$
4,456
|
$
—
|
$
57,233
|
Intersegment
revenues
|
25
|
—
|
—
|
69
|
414
|
(508)
|
—
|
Total
revenue
|
21,276
|
19,714
|
10,849
|
1,032
|
4,870
|
(508)
|
57,233
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
16,443
|
20,096
|
4,601
|
1,363
|
3,784
|
—
|
46,287
|
Intersegment cost of
revenues
|
321
|
31
|
—
|
—
|
156
|
(508)
|
—
|
Total cost of
revenue
|
16,764
|
20,127
|
4,601
|
1,363
|
3,940
|
(508)
|
46,287
|
Selling, general and
administrative
|
2,164
|
(1,017)
|
1,243
|
309
|
850
|
—
|
3,549
|
Depreciation,
depletion, amortization and accretion
|
6,709
|
4,380
|
1,946
|
1,812
|
3,069
|
—
|
17,916
|
(Gains) losses on
disposal of assets, net
|
(122)
|
(31)
|
12
|
(11)
|
(363)
|
—
|
(515)
|
Impairment of
goodwill
|
—
|
891
|
—
|
—
|
—
|
—
|
891
|
Impairment of other
long-lived assets
|
—
|
665
|
—
|
—
|
—
|
—
|
665
|
Operating (loss)
income
|
(4,239)
|
(5,301)
|
3,047
|
(2,441)
|
(2,626)
|
—
|
(11,560)
|
Interest expense,
net
|
419
|
1,613
|
183
|
116
|
197
|
—
|
2,528
|
Other expense (income),
net
|
1
|
(4,100)
|
6
|
34
|
(239)
|
—
|
(4,298)
|
(Loss) income before
income taxes
|
$
(4,659)
|
$
(2,814)
|
$
2,858
|
$
(2,591)
|
$
(2,584)
|
$
—
|
$
(9,790)
|
|
|
Year ended December 31,
2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
169,872
|
$
111,452
|
$
48,916
|
$
10,346
|
$
21,500
|
$
—
|
$
362,086
|
Intersegment
revenues
|
791
|
—
|
2,475
|
22
|
1,614
|
(4,902)
|
—
|
Total
revenue
|
170,663
|
111,452
|
51,391
|
10,368
|
23,114
|
(4,902)
|
362,086
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
124,848
|
91,577
|
36,783
|
9,259
|
16,120
|
—
|
278,587
|
Intersegment cost of
revenues
|
3,894
|
72
|
—
|
538
|
398
|
(4,902)
|
—
|
Total cost of
revenue
|
128,742
|
91,649
|
36,783
|
9,797
|
16,518
|
(4,902)
|
278,587
|
Selling, general and
administrative
|
8,642
|
19,147
|
7,171
|
1,241
|
3,353
|
—
|
39,554
|
Depreciation,
depletion, amortization and accretion
|
22,103
|
16,171
|
8,732
|
6,467
|
10,798
|
—
|
64,271
|
Gains on disposal of
assets, net
|
(615)
|
(795)
|
(89)
|
(172)
|
(2,237)
|
—
|
(3,908)
|
Operating income
(loss)
|
11,791
|
(14,720)
|
(1,206)
|
(6,965)
|
(5,318)
|
—
|
(16,418)
|
Interest expense,
net
|
1,940
|
7,390
|
753
|
545
|
878
|
—
|
11,506
|
Other income,
net
|
(343)
|
(40,470)
|
(14)
|
—
|
(85)
|
—
|
(40,912)
|
Income (loss) before
income taxes
|
$
10,194
|
$
18,360
|
$
(1,945)
|
$
(7,510)
|
$
(6,111)
|
$
—
|
$
12,988
|
|
|
Year ended December 31,
2021
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
84,190
|
$
93,403
|
$
30,880
|
$
4,197
|
$
16,292
|
$
—
|
$
228,962
|
Intersegment
revenues
|
144
|
—
|
3,980
|
124
|
2,218
|
(6,466)
|
—
|
Total
revenue
|
84,334
|
93,403
|
34,860
|
4,321
|
18,510
|
(6,466)
|
228,962
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
58,782
|
90,363
|
27,232
|
6,102
|
15,847
|
—
|
198,326
|
Intersegment cost of
revenues
|
5,770
|
196
|
—
|
—
|
500
|
(6,466)
|
—
|
Total cost of
revenue
|
64,552
|
90,559
|
27,232
|
6,102
|
16,347
|
(6,466)
|
198,326
|
Selling, general and
administrative
|
49,275
|
18,267
|
5,351
|
1,414
|
3,939
|
—
|
78,246
|
Depreciation,
depletion, amortization and accretion
|
26,377
|
21,880
|
9,005
|
7,996
|
13,217
|
—
|
78,475
|
Gains on disposal of
assets, net
|
(770)
|
(286)
|
(30)
|
(202)
|
(3,859)
|
—
|
(5,147)
|
Impairment of
goodwill
|
—
|
891
|
—
|
—
|
—
|
—
|
891
|
Impairment of other
long-lived assets
|
—
|
665
|
—
|
—
|
547
|
—
|
1,212
|
Operating
loss
|
(55,100)
|
(38,573)
|
(6,698)
|
(10,989)
|
(11,681)
|
—
|
(123,041)
|
Interest expense,
net
|
1,107
|
3,925
|
474
|
293
|
607
|
—
|
6,406
|
Other expense (income),
net
|
1,843
|
(6,499)
|
(844)
|
25
|
321
|
—
|
(5,154)
|
Loss before income
taxes
|
$
(58,050)
|
$
(35,999)
|
$
(6,328)
|
$
(11,307)
|
$
(12,609)
|
$
—
|
$ (124,293)
|
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, gains on disposal of assets, net, 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 interest on trade accounts receivable
and certain legal expenses) 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
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
$
4,772
|
|
$
(13,297)
|
|
$
(619)
|
|
$
(101,430)
|
Depreciation,
depletion, amortization and accretion expense
|
13,786
|
|
17,916
|
|
64,271
|
|
78,475
|
Gains on disposal of
assets, net
|
(170)
|
|
(515)
|
|
(3,908)
|
|
(5,147)
|
Impairment of
goodwill
|
—
|
|
891
|
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
665
|
|
—
|
|
1,212
|
Public offering
costs
|
—
|
|
—
|
|
—
|
|
91
|
Stock based
compensation
|
241
|
|
242
|
|
923
|
|
1,191
|
Interest expense,
net
|
3,237
|
|
2,528
|
|
11,506
|
|
6,406
|
Other income,
net
|
(10,737)
|
|
(4,298)
|
|
(40,912)
|
|
(5,154)
|
Provision (benefit) for
income taxes
|
2,165
|
|
3,507
|
|
13,607
|
|
(22,863)
|
Interest on trade
accounts receivable
|
10,785
|
|
9,571
|
|
41,276
|
|
34,709
|
Adjusted
EBITDA
|
$
24,079
|
|
$
17,210
|
|
$
86,144
|
|
$
(11,619)
|
|
Well Completion
Services
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
$
7,838
|
|
$
(4,659)
|
|
$
10,194
|
|
$
(58,051)
|
Depreciation and
amortization expense
|
4,140
|
|
6,709
|
|
22,103
|
|
26,377
|
Gains on disposal of
assets, net
|
(68)
|
|
(122)
|
|
(615)
|
|
(770)
|
Public offering
costs
|
—
|
|
—
|
|
—
|
|
31
|
Stock based
compensation
|
106
|
|
80
|
|
380
|
|
333
|
Interest
expense
|
617
|
|
419
|
|
1,940
|
|
1,107
|
Other expense (income),
net
|
1
|
|
1
|
|
(343)
|
|
1,843
|
Interest on trade
accounts receivable
|
—
|
|
—
|
|
—
|
|
(1,841)
|
Adjusted
EBITDA
|
$
12,634
|
|
$
2,428
|
|
$
33,659
|
|
$
(30,971)
|
|
Infrastructure
Services
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
$
1,609
|
|
$
(5,992)
|
|
$
4,933
|
|
$
(36,711)
|
Depreciation and
amortization expense
|
3,675
|
|
4,380
|
|
16,171
|
|
21,880
|
(Gains) losses on
disposal of assets, net
|
—
|
|
(31)
|
|
(795)
|
|
(286)
|
Impairment of
goodwill
|
—
|
|
891
|
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
665
|
|
—
|
|
665
|
Public offering
costs
|
—
|
|
—
|
|
—
|
|
39
|
Stock based
compensation
|
88
|
|
100
|
|
349
|
|
500
|
Interest
expense
|
2,046
|
|
1,613
|
|
7,390
|
|
3,925
|
Other income,
net
|
(10,522)
|
|
(4,100)
|
|
(40,470)
|
|
(6,499)
|
Provision for income
taxes
|
3,250
|
|
3,175
|
|
13,427
|
|
712
|
Interest on trade
accounts receivable
|
10,785
|
|
9,571
|
|
41,276
|
|
36,551
|
Adjusted
EBITDA
|
$
10,931
|
|
$
10,272
|
|
$
42,281
|
|
$
21,667
|
|
Natural Sand
Proppant Services
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net (loss) income:
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net (loss)
income
|
$
(2,849)
|
|
$
2,858
|
|
$
(1,945)
|
|
$
(6,328)
|
Depreciation,
depletion, amortization and accretion expense
|
2,015
|
|
1,946
|
|
8,732
|
|
9,005
|
Losses (gains) on
disposal of assets, net
|
1
|
|
12
|
|
(89)
|
|
(30)
|
Public offering
costs
|
—
|
|
—
|
|
—
|
|
12
|
Stock based
compensation
|
29
|
|
39
|
|
119
|
|
202
|
Interest
expense
|
201
|
|
183
|
|
753
|
|
474
|
Other (income) expense,
net
|
(4)
|
|
6
|
|
(14)
|
|
(844)
|
Interest on trade
accounts receivable
|
—
|
|
—
|
|
—
|
|
(1)
|
Adjusted
EBITDA
|
$
(607)
|
|
$
5,044
|
|
$
7,556
|
|
$
2,490
|
|
Drilling
Services
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net loss:
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
$
(2,027)
|
|
$
(2,590)
|
|
$
(7,510)
|
|
$
(11,307)
|
Depreciation
expense
|
1,539
|
|
1,812
|
|
6,467
|
|
7,996
|
Losses (gains) on
disposal of assets, net
|
113
|
|
(11)
|
|
(172)
|
|
(202)
|
Public offering
costs
|
—
|
|
—
|
|
—
|
|
2
|
Stock based
compensation
|
5
|
|
5
|
|
18
|
|
76
|
Interest
expense
|
166
|
|
116
|
|
545
|
|
293
|
Other expense,
net
|
—
|
|
34
|
|
—
|
|
25
|
Adjusted
EBITDA
|
$
(204)
|
|
$
(634)
|
|
$
(652)
|
|
$
(3,117)
|
|
Other
Services(a)
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
$
201
|
|
$
(2,915)
|
|
$
(6,291)
|
|
$
10,967
|
Depreciation,
amortization and accretion expense
|
2,417
|
|
3,069
|
|
10,798
|
|
13,217
|
Gains on disposal of
assets, net
|
(216)
|
|
(363)
|
|
(2,237)
|
|
(3,859)
|
Impairment of other
long-lived assets
|
—
|
|
—
|
|
—
|
|
547
|
Public offering
costs
|
—
|
|
—
|
|
—
|
|
7
|
Stock based
compensation
|
13
|
|
18
|
|
57
|
|
80
|
Interest expense,
net
|
207
|
|
197
|
|
878
|
|
607
|
Other (income) expense,
net
|
(212)
|
|
(239)
|
|
(85)
|
|
321
|
(Benefit) provision for
income taxes
|
(1,085)
|
|
332
|
|
180
|
|
(23,575)
|
Adjusted
EBITDA
|
$
1,325
|
|
$
99
|
|
$
3,300
|
|
$
(1,688)
|
a.
|
Includes results for
Mammoth's aviation, equipment rentals, remote accommodations and
equipment manufacturing and corporate related activities. The
Company's corporate related activities do not generate
revenue.
|
Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per
Share
Adjusted net income (loss) and adjusted basic and diluted
earnings (loss) per share are supplemental non-GAAP financial
measures that are used by management to evaluate the Company's
operating and financial performance. Mammoth defines adjusted net
income (loss) as net income (loss) before impairment of goodwill
and impairment of other long-lived assets. Mammoth defines adjusted
basic and diluted earnings (loss) per share as earnings (loss) per
share before the effects of impairment of goodwill and impairment
of other long-lived assets. 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
income (loss) and adjusted earnings (loss) per share should not be
considered in isolation or as a substitute for net income (loss)
and earnings (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 income (loss) and adjusted earnings (loss) per share
to the GAAP financial measures of net income (loss) and earnings
(loss) per share for the periods specified.
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in thousands,
except per share amounts)
|
Net income (loss), as
reported
|
$
4,772
|
|
$
(13,297)
|
|
$
(619)
|
|
$
(101,430)
|
Impairment of
goodwill
|
—
|
|
891
|
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
665
|
|
—
|
|
1,212
|
Adjusted net income
(loss)
|
$
4,772
|
|
$
(11,741)
|
|
$
(619)
|
|
$
(99,327)
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share, as reported
|
$
0.10
|
|
$
(0.28)
|
|
$
(0.01)
|
|
$
(2.18)
|
Impairment of
goodwill
|
—
|
|
0.02
|
|
—
|
|
0.02
|
Impairment of other
long-lived assets
|
—
|
|
0.01
|
|
—
|
|
0.03
|
Adjusted basic earnings
(loss) per share
|
$
0.10
|
|
$
(0.25)
|
|
$
(0.01)
|
|
$
(2.13)
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share, as reported
|
$
0.10
|
|
$
(0.28)
|
|
$
(0.01)
|
|
$
(2.18)
|
Impairment of
goodwill
|
—
|
|
0.02
|
|
—
|
|
0.02
|
Impairment of other
long-lived assets
|
—
|
|
0.01
|
|
—
|
|
0.03
|
Adjusted diluted
earnings (loss) per share
|
$
0.10
|
|
$
(0.25)
|
|
$
(0.01)
|
|
$
(2.13)
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-fourth-quarter-and-full-year-2022-operational-and-financial-results-301754864.html
SOURCE Mammoth Energy Services, Inc.