Superior Energy Services, Inc. (NYSE: SPN) (the “Company”) today
announced a net loss from continuing operations for the fourth
quarter of 2019 of $6.2 million, or $0.42 per share, on revenue of
$336.1 million. This compares to a net loss from continuing
operations of $20.5 million, or $1.31 per share, for the third
quarter of 2019, on revenue of $356.6 million and a net loss from
continuing operations of $317.0 million, or $20.51 per share for
the fourth quarter of 2018, on revenue of $389.4 million.
As previously announced, during the fourth
quarter of 2019, the Company exited its hydraulic fracturing
operations. The financial results of this service line have
historically been included in the Onshore Completion and Workover
Services segment, and are reflected in discontinued operations for
the fourth quarter of 2019 and prior period results reported
herein. Loss from discontinued operations was $92.4 million,
$17.9 million, and $433.2 million for the fourth quarter of 2019,
third quarter of 2019, and fourth quarter of 2018,
respectively.
The Company reported pre-tax charges of $2.9
million in restructuring costs and $3.1 million in connection with
the previously announced strategic transaction with Forbes Energy
Services Ltd. (OTCQX: FLSS) (“Forbes”). The resulting
adjusted net loss from continuing operations for the fourth quarter
of 2019 was $1.6 million, or $0.11 per share.
For the year ended December 31, 2019, the
Company’s net loss from continuing operations was $77.8 million, or
$5.05 per share, on revenue of $1,425.4 million as compared with a
net loss from continuing operations of $427.4 million, or $27.69
per share, on revenue of $1,478.9 million for the year ended
December 31, 2018. Loss from discontinued operations was
$178.0 million and $430.7 million for the year ended December 31,
2019 and 2018, respectively.
David Dunlap, President and CEO, commented, “Our
fourth quarter results highlight the divergence of U.S. land
markets, where declining activity resulted in lower revenue, and
U.S. offshore and international markets, in which activity improved
at a similar rate as we have observed for the past several
quarters.
“We believe this divergence may be sustained for
quite some time and have taken steps during the quarter to reorient
our business. In late December, we announced a strategic
transaction in which the Company is combining its U.S. service rig,
coiled tubing, wireline, pressure control, flowback, fluid
management and accommodations service lines with Forbes’
complimentary service lines creating a new publicly traded
consolidation platform for U.S. completion, production and water
solutions.
“The divestiture of our U.S. land service
businesses will result in the Company being comprised primarily of
globally diversified, high margin businesses with strong
competitive positions. The Company will be uniquely
positioned with a portfolio of assets, which have historically
generated free cash flow through the cycle.
Fourth Quarter 2019 Geographic
Breakdown
U.S. land revenue was $137.9 million in the
fourth quarter of 2019, a decrease of 15% as compared with revenue
of $162.5 million in the third quarter of 2019, and a 33% decrease
compared to revenue of $207.0 million in the fourth quarter of
2018. U.S. offshore revenue remained flat at $95.3 million as
compared with the third quarter of 2019 revenue, and increased by
6% from revenue of $89.5 million in the fourth quarter of 2018.
International revenue of $103.0 million increased by 2% as
compared with revenue of $101.1 million in the third quarter of
2019 and increased 11% as compared to revenue of $92.9 million in
the fourth quarter of
2018.
Drilling Products and Services
Segment
The Drilling Products and Services segment
revenue in the fourth quarter of 2019 was $98.6 million, an 11%
decrease from third quarter 2019 revenue of $111.2 million and a 6%
decrease from fourth quarter 2018 revenue of $105.3 million.
U.S. land revenue decreased 22% to $36.3
million, U.S. offshore revenue was flat at $34.0 million and
international revenue decreased 8% to $28.3 million.
Onshore Completion and Workover Services
Segment
The Onshore Completion and Workover Services
segment revenue in the fourth quarter of 2019 was $67.6 million, an
11% decrease from third quarter 2019 revenue of $76.0 million, and
a 36% decrease from fourth quarter 2018 revenue of $105.2
million.
Production Services Segment
The Production Services segment revenue
increased in the fourth quarter of 2019 by 2% to $100.6 million
from $98.7 million in the third quarter of 2019, and decreased by
8% from fourth quarter 2018 revenue of $109.9 million.
U.S. land revenue was $26.2 million, a 20%
decrease from third quarter revenue of $32.6 million. U.S.
offshore revenue decreased 20% sequentially to $14.6 million and
international revenue increased by 25% sequentially to $59.8
million.
Technical Solutions Segment
The Technical Solutions segment revenue in the
fourth quarter of 2019 was $69.3 million, a 2% decrease from third
quarter 2019 revenue of $70.7 million and remained flat when
compared to the fourth quarter 2018 revenue of $69.0 million.
U.S. land revenue increased 7% sequentially to
$7.8 million. U.S. offshore revenue increased 14%
sequentially to $46.6 million and international revenue decreased
34% sequentially to $14.9 million.
Strategic Transaction
As previously announced, on December 18, 2019,
the Company entered into a definitive agreement to divest its U.S.
service rig, coiled tubing, wireline, pressure control, flowback,
fluid management and accommodations service lines and combine them
with Forbes’s complementary service lines to create a new,
publicly traded consolidation platform for U.S. completion,
production and water solutions. This strategic transaction is
expected to close during the second quarter of 2020.
Conference Call Information
The Company will host a conference call at 9:00
a.m. Eastern Time on Thursday, February 20, 2020. The call
can be accessed from the Company’s website at
www.superiorenergy.com or by telephone at 888-317-6003 and using
entry number 7587134. For those who cannot listen to the live
call, a telephonic replay will be available through February 27,
2020 and may be accessed by calling 877-344-7529 and using the
access code 10138541.
About Superior Energy
Services
Superior Energy (NYSE: SPN) serves the drilling,
completion and production-related needs of oil and gas companies
worldwide through a diversified portfolio of specialized oilfield
services and equipment that are used throughout the economic life
cycle of oil and gas wells. For more information, visit:
www.superiorenergy.com.
Forward-Looking Statements
All statements in this communication (and oral
statements made regarding the subjects of this communication) other
than historical facts are forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
uncertainties and factors, many of which are outside the control of
Superior Energy, Forbes and Spieth Newco, Inc. (“Newco”), which
could cause actual results to differ materially from such
statements. Forward-looking information includes, but is not
limited to: statements regarding the expected benefits of the
proposed transaction; the anticipated completion of the proposed
transaction and the timing thereof; the expected future results of
operations and growth of Superior Energy and Newco; and plans and
objectives of management for future operations of Superior Energy
and Newco.
While Superior Energy believes that the
assumptions concerning future events are reasonable, it cautions
that there are inherent difficulties in predicting certain
important factors that could impact the future performance or
results of its and Newco’s business. Among the factors that could
cause results to differ materially from those indicated by such
forward-looking statements are: the failure to realize the
anticipated costs savings, synergies and other benefits of the
transaction; the possible diversion of management time on
transaction-related issues; the risk that the requisite approvals
to complete the transaction are not obtained or other closing
conditions are not satisfied; local, regional and national economic
conditions and the impact they may have on Superior Energy, Forbes,
Newco and their customers; conditions in the oil and gas industry,
especially oil and natural gas prices and capital expenditures by
oil and gas companies; the debt obligations of Superior Energy and
Newco following the transaction and the potential effect of
limiting Superior Energy’s and/or Newco’s ability to fund future
growth and operations and increasing their respective exposure to
risk during adverse economic conditions; the financial condition of
Superior Energy’s and Newco’s customers; any non-performance by
customers of their contractual obligations; changes in customer,
employee or supplier relationships resulting from the transaction;
changes in safety, health, environmental and other regulations; the
results of any reviews, investigations or other proceedings by
government authorities; and the potential additional costs relating
to any reviews, investigations or other proceedings by government
authorities or shareholder actions.
These forward-looking statements are also
affected by the risk factors, forward-looking statements and
challenges and uncertainties described in Superior Energy’s Annual
Report on Form 10-K for the year ended December 31, 2018, and those
set forth from time to time in Superior Energy’s filings with the
Securities and Exchange Commission (the “SEC”), which are available
at www.superiorenergy.com. Except as required by law, Superior
Energy expressly disclaims any intention or obligation to revise or
update any forward-looking statements whether as a result of new
information, future events or otherwise.
No Offer or Solicitation
This communication is not intended to and does
not constitute an offer to sell or the solicitation of an offer to
subscribe for or buy or an invitation to purchase or subscribe for
any securities or the solicitation of any vote in any jurisdiction
pursuant to the proposed transaction or otherwise, nor shall there
be any sale, issuance or transfer of securities in any jurisdiction
in contravention of applicable law. Subject to certain exceptions
to be approved by the relevant regulators or certain facts to be
ascertained, the public offer will not be made directly or
indirectly, in or into any jurisdiction where to do so would
constitute a violation of the laws of such jurisdiction, or by use
of the mails or by any means or instrumentality (including without
limitation, facsimile transmission, telephone and the internet) of
interstate or foreign commerce, or any facility of a national
securities exchange, of any such jurisdiction.
Important Additional Information
Regarding the Transaction Will Be Filed With the SEC
In connection with the proposed transaction,
Newco has filed a registration statement on Form S-4, which
included a preliminary joint proxy statement/prospectus of Newco
and Forbes, with the SEC. A definitive joint proxy
statement/prospectus will be filed with the SEC once the
registration statement becomes effective. While the registration
statement and joint proxy statement/prospectus have not yet become
effective and the information therein is subject to change, they
provide important information about the transaction. INVESTORS AND
SECURITY HOLDERS OF SUPERIOR ENERGY AND FORBES ARE ADVISED TO
CAREFULLY READ THE PRELIMINARY JOINT PROXY STATEMENT/PROSPECTUS,
AND TO READ THE REGISTRATION STATEMENT AND DEFINITIVE JOINT PROXY
STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS
THERETO) WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE TRANSACTION, THE PARTIES TO THE
TRANSACTION AND THE RISKS ASSOCIATED WITH THE TRANSACTION. A
definitive joint proxy statement/prospectus will be sent to
security holders of Forbes in connection with the Forbes
shareholder meeting. Investors and security holders may obtain a
free copy of the joint proxy statement/prospectus (when available)
and other relevant documents filed by Superior Energy, Forbes and
Newco with the SEC from the SEC’s website at www.sec.gov. Security
holders and other interested parties will also be able to obtain,
without charge, a copy of the joint proxy statement/prospectus and
other relevant documents (when available) from
www.superiorenergy.com under the tab “Investors” and then under the
heading “SEC Filings.” Security holders may also read and copy any
reports, statements and other information filed with the SEC at the
SEC public reference room at 100 F Street N.E., Room 1580,
Washington D.C. 20549. Please call the SEC at (800) 732-0330 or
visit the SEC’s website for further information on its public
reference room.
Participants in the
Solicitation
Superior Energy, Forbes and their respective
directors, executive officers and certain other members of
management may be deemed to be participants in the solicitation of
proxies from their respective security holders with respect to the
transaction. Information about these persons is set forth in
Superior Energy’s proxy statement relating to its 2019 Annual
Meeting of Stockholders, which was filed with the SEC on April 26,
2019, and Forbes’ proxy statement relating to its 2019 Annual
Meeting of Stockholders, which was filed with the SEC on April 25,
2019, and subsequent statements of changes in beneficial ownership
on file with the SEC. Security holders and investors may obtain
additional information regarding the interests of such persons,
which may be different than those of the respective companies’
security holders generally, by reading the joint proxy
statement/prospectus and other relevant documents regarding the
transaction, which will be filed with the SEC.
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands,
except per share data) |
(unaudited) |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
336,072 |
|
|
$ |
389,447 |
|
|
$ |
356,585 |
|
|
$ |
1,425,369 |
|
|
$ |
1,478,857 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services and rentals (exclusive of depreciation, depletion,
amortization and accretion) |
|
|
223,570 |
|
|
|
248,394 |
|
|
|
231,927 |
|
|
|
925,082 |
|
|
|
970,488 |
|
Depreciation, depletion, amortization and accretion |
|
|
43,741 |
|
|
|
65,478 |
|
|
|
45,162 |
|
|
|
196,459 |
|
|
|
278,439 |
|
General and
administrative expenses |
|
|
65,211 |
|
|
|
72,422 |
|
|
|
60,866 |
|
|
|
268,226 |
|
|
|
276,468 |
|
Reduction in
value of assets |
|
|
- |
|
|
|
322,713 |
|
|
|
9,571 |
|
|
|
17,185 |
|
|
|
322,713 |
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) from operations |
|
|
3,550 |
|
|
|
(319,560 |
) |
|
|
9,059 |
|
|
|
18,417 |
|
|
|
(369,251 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(24,038 |
) |
|
|
(24,745 |
) |
|
|
(24,505 |
) |
|
|
(98,312 |
) |
|
|
(99,477 |
) |
Other income (expense) |
|
|
1,993 |
|
|
|
2,717 |
|
|
|
(3,353 |
) |
|
|
(2,484 |
) |
|
|
(1,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations before income taxes |
|
|
(18,495 |
) |
|
|
(341,588 |
) |
|
|
(18,799 |
) |
|
|
(82,379 |
) |
|
|
(470,406 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
(12,333 |
) |
|
|
(24,574 |
) |
|
|
1,708 |
|
|
|
(4,626 |
) |
|
|
(43,003 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss
from continuing operations |
|
|
(6,162 |
) |
|
|
(317,014 |
) |
|
|
(20,507 |
) |
|
|
(77,753 |
) |
|
|
(427,403 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income tax |
|
(92,362 |
) |
|
|
(433,171 |
) |
|
|
(17,934 |
) |
|
|
(177,968 |
) |
|
|
(430,712 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(98,524 |
) |
|
$ |
(750,185 |
) |
|
$ |
(38,441 |
) |
|
$ |
(255,721 |
) |
|
$ |
(858,115 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted loss per share: |
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
$ |
(0.42 |
) |
|
$ |
(20.51 |
) |
|
$ |
(1.31 |
) |
|
$ |
(5.05 |
) |
|
$ |
(27.69 |
) |
Loss from discontinued operations |
|
|
(6.26 |
) |
|
|
(28.03 |
) |
|
|
(1.15 |
) |
|
|
(11.56 |
) |
|
|
(27.90 |
) |
Net loss |
|
$ |
(6.68 |
) |
|
$ |
(48.54 |
) |
|
$ |
(2.46 |
) |
|
$ |
(16.61 |
) |
|
$ |
(55.59 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
14,745 |
|
|
|
15,454 |
|
|
|
15,657 |
|
|
|
15,393 |
|
|
|
15,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
272,624 |
|
$ |
158,050 |
Accounts receivable, net |
|
332,047 |
|
447,353 |
Income taxes receivable |
|
740 |
|
- |
Prepaid expenses |
|
49,132 |
|
45,802 |
Inventory and other current assets |
|
117,629 |
|
121,700 |
Assets held for sale |
|
216,197 |
|
- |
|
|
|
|
|
Total current assets |
|
988,369 |
|
772,905 |
|
|
|
|
|
Property,
plant and equipment, net |
|
664,949 |
|
1,109,126 |
Operating
lease right-of-use assets |
|
80,906 |
|
- |
Goodwill |
|
137,695 |
|
136,788 |
Notes
receivable |
|
68,092 |
|
63,993 |
Restricted
cash |
|
2,764 |
|
5,698 |
Intangible
and other long-term assets, net |
|
50,455 |
|
127,452 |
|
|
|
|
|
Total assets |
|
$ |
1,993,230 |
|
$ |
2,215,962 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
92,966 |
|
$ |
139,325 |
Accrued expenses |
|
182,934 |
|
219,180 |
Income taxes payable |
|
- |
|
734 |
Current portion of decommissioning liabilities |
|
3,649 |
|
3,538 |
Liabilities held for sale |
|
44,938 |
|
- |
|
|
|
|
|
Total current liabilities |
|
324,487 |
|
362,777 |
|
|
|
|
|
Long-term
debt, net |
|
1,286,629 |
|
1,282,921 |
Decommissioning liabilities |
|
132,632 |
|
126,558 |
Operating
lease liabilities |
|
62,354 |
|
- |
Deferred
income taxes |
|
3,247 |
|
- |
Other
long-term liabilities |
|
134,308 |
|
152,967 |
|
|
|
|
|
Total
stockholders' equity |
|
49,573 |
|
290,739 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
1,993,230 |
|
$ |
2,215,962 |
|
|
|
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
TWELVE
MONTHS ENDED DECEMBER 31, 2019 AND 2018 |
(in thousands) |
(unaudited) |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
Net loss |
|
$ |
(255,721 |
) |
|
$ |
(858,115 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
|
271,410 |
|
|
|
400,848 |
|
Reduction in value of assets |
|
|
93,763 |
|
|
|
739,725 |
|
Other noncash items |
|
|
27,651 |
|
|
|
(39,152 |
) |
Changes in working capital and other |
|
|
9,325 |
|
|
|
(78,249 |
) |
Net cash provided by operating activities |
|
|
146,428 |
|
|
|
165,057 |
|
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
|
Payments for capital expenditures |
|
|
(140,465 |
) |
|
|
(221,370 |
) |
Proceeds from sales of assets |
|
|
110,008 |
|
|
|
33,299 |
|
Net cash used in investing activities |
|
|
(30,457 |
) |
|
|
(188,071 |
) |
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
|
Other |
|
|
(5,292 |
) |
|
|
(2,586 |
) |
Net cash used in financing activities |
|
|
(5,292 |
) |
|
|
(2,586 |
) |
|
|
|
|
|
Effect of exchange rate changes in cash |
|
|
961 |
|
|
|
(3,135 |
) |
|
|
|
|
|
Net change in cash, cash equivalents, and restricted cash |
|
|
111,640 |
|
|
|
(28,735 |
) |
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period |
|
|
163,748 |
|
|
|
192,483 |
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash at end of period |
|
$ |
275,388 |
|
|
$ |
163,748 |
|
|
|
|
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
REVENUE BY
GEOGRAPHIC REGION BY SEGMENT |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended, |
|
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
U.S.
land |
|
|
|
|
|
|
|
Drilling Products and Services |
|
$ |
36,271 |
|
$ |
46,590 |
|
$ |
46,732 |
|
Onshore Completion and Workover Services |
|
67,571 |
|
|
75,973 |
|
|
105,172 |
|
Production Services |
|
|
26,205 |
|
|
32,620 |
|
|
47,103 |
|
Technical Solutions |
|
|
7,774 |
|
|
7,283 |
|
|
7,993 |
|
Total U.S.
land |
|
$ |
137,821 |
|
$ |
162,466 |
|
$ |
207,000 |
|
|
|
|
|
|
|
|
|
U.S.
offshore |
|
|
|
|
|
|
|
Drilling Products and Services |
|
$ |
34,056 |
|
$ |
33,895 |
|
$ |
30,540 |
|
Onshore Completion and Workover Services |
|
- |
|
|
- |
|
|
- |
|
Production Services |
|
|
14,632 |
|
|
18,295 |
|
|
18,603 |
|
Technical Solutions |
|
|
46,655 |
|
|
40,771 |
|
|
40,325 |
|
Total U.S.
offshore |
|
$ |
95,343 |
|
$ |
92,961 |
|
$ |
89,468 |
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
Drilling Products and Services |
|
$ |
28,299 |
|
$ |
30,700 |
|
$ |
28,028 |
|
Onshore Completion and Workover Services |
|
- |
|
|
- |
|
|
- |
|
Production Services |
|
|
59,754 |
|
|
47,872 |
|
|
44,228 |
|
Technical Solutions |
|
|
14,855 |
|
|
22,586 |
|
|
20,723 |
|
Total
International |
|
$ |
102,908 |
|
$ |
101,158 |
|
$ |
92,979 |
|
|
|
|
|
|
|
|
|
Total
Revenues |
|
$ |
336,072 |
|
$ |
356,585 |
|
$ |
389,447 |
|
|
|
|
|
|
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
SEGMENT
HIGHLIGHTS |
(in thousands) |
(unaudited) |
|
|
|
Three months ended, |
|
Revenues |
|
December 31, 2019 |
(1) |
September 30, 2019 |
(1) |
December 31, 2018 |
(1) |
Drilling Products and Services |
|
$ |
98,626 |
|
|
$ |
111,185 |
|
|
$ |
105,300 |
|
|
Onshore Completion and Workover Services |
|
|
67,571 |
|
|
|
75,973 |
|
|
|
105,172 |
|
|
Production Services |
|
|
100,591 |
|
|
|
98,787 |
|
|
|
109,934 |
|
|
Technical Solutions |
|
|
69,284 |
|
|
|
70,640 |
|
|
|
69,041 |
|
|
Total
Revenues |
|
$ |
336,072 |
|
|
$ |
356,585 |
|
|
$ |
389,447 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations |
|
|
|
|
|
|
|
Drilling Products and Services |
|
$ |
27,631 |
|
|
$ |
37,991 |
|
|
$ |
27,143 |
|
|
Onshore Completion and Workover Services |
|
|
4,263 |
|
|
|
982 |
|
|
|
4,535 |
|
|
Production Services |
|
|
(8,764 |
) |
|
|
(4,136 |
) |
|
|
(3,893 |
) |
|
Technical Solutions |
|
|
8,047 |
|
|
|
1,583 |
|
|
|
6,356 |
|
|
Corporate and other |
|
|
(21,636 |
) |
|
|
(21,689 |
) |
|
|
(27,054 |
) |
|
Total Income
from Operations |
|
$ |
9,541 |
|
|
$ |
14,731 |
|
|
$ |
7,087 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
Drilling Products and Services |
|
$ |
46,946 |
|
|
$ |
58,159 |
|
|
$ |
53,193 |
|
|
Onshore Completion and Workover Services |
|
|
10,023 |
|
|
|
7,835 |
|
|
|
20,964 |
|
|
Production Services |
|
|
3,288 |
|
|
|
7,927 |
|
|
|
12,432 |
|
|
Technical Solutions |
|
|
13,514 |
|
|
|
6,492 |
|
|
|
11,677 |
|
|
Corporate and other |
|
|
(20,489 |
) |
|
|
(20,520 |
) |
|
|
(25,701 |
) |
|
Total
EBITDA |
|
$ |
53,282 |
|
|
$ |
59,893 |
|
|
$ |
72,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income (loss) from
operations and EBITDA exclude the impact of special items for the
three months ended December 31 and September 30, 2019 and December
31, 2018. For Non-GAAP reconciliations, refer to Table 2
below. |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
The following table reconciles net income/loss
from continuing operations, which is the directly comparable
financial measure determined in accordance with Generally Accepted
Accounting Principles (GAAP), to adjusted income/loss from
continuing operations (non-GAAP financial measure). This
financial measure is provided to enhance investors’ overall
understanding of the Company’s current financial performance.
Reconciliation of Consolidated Adjusted Net
Loss |
(in
thousands) |
(unaudited) |
Table
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended, |
|
Three months
ended, |
|
Three months
ended, |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
Consolidated |
|
Per Share |
|
Consolidated |
|
Per Share |
|
Consolidated |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net loss from continuing operations |
|
$ |
(6,162 |
) |
|
$ |
(0.42 |
) |
|
$ |
(20,507 |
) |
|
$ |
(1.31 |
) |
|
$ |
(317,014 |
) |
|
$ |
(20.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reduction in value of assets |
|
|
- |
|
|
|
- |
|
|
|
9,571 |
|
|
|
0.61 |
|
|
|
322,713 |
|
|
|
20.88 |
|
Restructuring costs |
|
|
2,896 |
|
|
|
0.20 |
|
|
|
1,877 |
|
|
|
0.12 |
|
|
|
3,934 |
|
|
|
0.25 |
|
Merger-related transaction costs |
|
|
3,095 |
|
|
|
0.21 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Legal settlement |
|
|
- |
|
|
|
- |
|
|
|
(5,776 |
) |
|
|
(0.37 |
) |
|
|
- |
|
|
|
- |
|
Income taxes |
|
|
(1,390 |
) |
|
|
(0.10 |
) |
|
|
(1,315 |
) |
|
|
(0.08 |
) |
|
|
(20,069 |
) |
|
|
(1.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
loss from continuing operations |
|
$ |
(1,561 |
) |
|
$ |
(0.11 |
) |
|
$ |
(16,150 |
) |
|
$ |
(1.03 |
) |
|
$ |
(10,436 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles net income/loss
from continuing operations by segment, which is the directly
comparable financial measure determined in accordance with GAAP, to
adjusted income/loss from continuing operations and adjusted EBITDA
by segment (non-GAAP financial measures). These financial
measures are provided to enhance investors’ overall understanding
of the Company’s current financial performance.
|
|
Reconciliation of Adjusted Income (Loss) from Operations
and Adjusted EBITDA by Segment |
(in
thousands) |
(unaudited) |
Table
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2019 |
|
|
DrillingProducts andServices |
|
OnshoreCompletionand WorkoverServices |
|
ProductionServices |
|
TechnicalSolutions |
|
Corporate andOther |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income (loss) from continuing operations |
|
$ |
27,618 |
|
$ |
3,187 |
|
|
$ |
(10,068 |
) |
|
$ |
8,612 |
|
|
$ |
(35,511 |
) |
|
$ |
(6,162 |
) |
Restructuring costs |
|
|
13 |
|
|
1,076 |
|
|
|
1,304 |
|
|
|
503 |
|
|
|
- |
|
|
|
2,896 |
|
Merger-related costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,095 |
|
|
|
3,095 |
|
Interest expense, net |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(1,068 |
) |
|
|
25,106 |
|
|
|
24,038 |
|
Other expense |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,993 |
) |
|
|
(1,993 |
) |
Income taxes |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(12,333 |
) |
|
|
(12,333 |
) |
Adjusted
income (loss) from continuing operations |
|
$ |
27,631 |
|
$ |
4,263 |
|
|
$ |
(8,764 |
) |
|
$ |
8,047 |
|
|
$ |
(21,636 |
) |
|
$ |
9,541 |
|
Depreciation, depletion, amortization and accretion |
|
|
19,315 |
|
|
5,760 |
|
|
|
12,052 |
|
|
|
5,467 |
|
|
|
1,147 |
|
|
|
43,741 |
|
Adjusted
EBITDA |
|
$ |
46,946 |
|
$ |
10,023 |
|
|
$ |
3,288 |
|
|
$ |
13,514 |
|
|
$ |
(20,489 |
) |
|
$ |
53,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2019 |
|
|
DrillingProducts andServices |
|
OnshoreCompletionand WorkoverServices |
|
ProductionServices |
|
TechnicalSolutions |
|
Corporate andOther |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income (loss) from continuing operations |
|
$ |
37,991 |
|
$ |
(927 |
) |
|
$ |
(734 |
) |
|
$ |
(4,531 |
) |
|
$ |
(52,306 |
) |
|
$ |
(20,507 |
) |
Reduction in value of assets |
|
|
- |
|
|
566 |
|
|
|
1,997 |
|
|
|
7,008 |
|
|
|
- |
|
|
|
9,571 |
|
Restructuring costs |
|
|
- |
|
|
1,343 |
|
|
|
377 |
|
|
|
157 |
|
|
|
- |
|
|
|
1,877 |
|
Legal settlement |
|
|
- |
|
|
- |
|
|
|
(5,776 |
) |
|
|
- |
|
|
|
- |
|
|
|
(5,776 |
) |
Interest expense, net |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(1,051 |
) |
|
|
25,556 |
|
|
|
24,505 |
|
Other expense |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,353 |
|
|
|
3,353 |
|
Income taxes |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,708 |
|
|
|
1,708 |
|
Adjusted
income (loss) from continuing operations |
|
$ |
37,991 |
|
$ |
982 |
|
|
$ |
(4,136 |
) |
|
$ |
1,583 |
|
|
$ |
(21,689 |
) |
|
$ |
14,731 |
|
Depreciation, depletion, amortization and accretion |
|
|
20,168 |
|
|
6,853 |
|
|
|
12,063 |
|
|
|
4,909 |
|
|
|
1,169 |
|
|
|
45,162 |
|
Adjusted
EBITDA |
|
$ |
58,159 |
|
$ |
7,835 |
|
|
$ |
7,927 |
|
|
$ |
6,492 |
|
|
$ |
(20,520 |
) |
|
$ |
59,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2018 |
|
|
DrillingProducts andServices |
|
OnshoreCompletionand WorkoverServices |
|
ProductionServices |
|
TechnicalSolutions |
|
Corporate andOther |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income (loss) from continuing operations |
|
$ |
26,678 |
|
$ |
(224,877 |
) |
|
$ |
(97,425 |
) |
|
$ |
7,280 |
|
|
$ |
(28,670 |
) |
|
$ |
(317,014 |
) |
Reduction in value of assets |
|
|
- |
|
|
227,801 |
|
|
|
92,252 |
|
|
|
- |
|
|
|
2,660 |
|
|
|
322,713 |
|
Restructuring costs |
|
|
465 |
|
|
1,611 |
|
|
|
1,280 |
|
|
|
78 |
|
|
|
500 |
|
|
|
3,934 |
|
Interest expense, net |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(1,002 |
) |
|
|
25,747 |
|
|
|
24,745 |
|
Other expense |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,717 |
) |
|
|
(2,717 |
) |
Income taxes |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(24,574 |
) |
|
|
(24,574 |
) |
Adjusted
income (loss) from continuing operations |
|
$ |
27,143 |
|
$ |
4,535 |
|
|
$ |
(3,893 |
) |
|
$ |
6,356 |
|
|
$ |
(27,054 |
) |
|
$ |
7,087 |
|
Depreciation, depletion, amortization and accretion |
|
|
26,050 |
|
|
16,429 |
|
|
|
16,325 |
|
|
|
5,321 |
|
|
|
1,353 |
|
|
|
65,478 |
|
Adjusted
EBITDA |
|
$ |
53,193 |
|
$ |
20,964 |
|
|
$ |
12,432 |
|
|
$ |
11,677 |
|
|
$ |
(25,701 |
) |
|
$ |
72,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR FURTHER INFORMATION CONTACT:Paul Vincent, VP
of Treasury and Investor Relations, (713) 654-2200
Superior Energy Services (NYSE:SPN)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Superior Energy Services (NYSE:SPN)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024