Revenue of $119.1 million, down 7.0% year-over-year
Adjusted EBITDA margin improves 90 basis points to 15.7%
Generates $30.6 million in free cash flow
SCOTTSDALE, Ariz., May 11, 2015 /PRNewswire/ -- Nuverra Environmental Solutions, Inc. (NYSE: NES) ("Nuverra" or the "Company") announced financial and operating results today for the first quarter ended March 31, 2015.
SUMMARY OF RESULTS
Mark D. Johnsrud, Chairman of the Board and Chief Executive Officer, commented, "First-quarter results reflected a decline in drilling and completion activities, primarily in the Bakken, Eagle Ford and Haynesville Shale regions, coupled with some targeted pricing pressures at our larger customers. We anticipated this downturn and prepared by implementing multiple cost-savings initiatives in the first quarter that have contributed to a reduction in overall operating expenses by 10.7% compared with the prior-year period.
"During the quarter, our Rocky Mountain Division experienced the greatest impact from declines in drilling and completion activities, in addition to large customers seeking pricing concessions. Even on reduced revenue, we held Adjusted EBITDA margins steady in the Bakken at 26.4% by actively managing our operating costs," Mr. Johnsrud explained. "Our Southern Division showed margin improvement, despite decreases in drilling and completion-related revenue, which were offset by growth in water transfer services. The Northeast Division remained level sequentially through the first quarter, with considerable growth year-over-year in revenue and Adjusted EBITDA, reflecting increased activity levels with existing and new customers.
"We continue to operate in a challenging environment, with U.S. drilling activity experiencing an unprecedented decline during the first quarter and into the current quarter. Despite these headwinds, we generated $34.8 million in cash flow from operations and $30.6 million in free cash flow in Q1. We improved our Adjusted EBITDA margin by 90 basis points to 15.7% compared with the same quarter of 2014. While this downturn will continue to put pressure on service providers like Nuverra, we believe our production focus provides us a competitive advantage, and the longer-term outlook for a recovery remains intact," Mr. Johnsrud said. "Until then, we remain highly focused on optimally managing those things we can control, including targeted cost-saving measures, judicious use of capital and delivering the industry's best services and safety practices to our customers."
FIRST QUARTER 2015 HIGHLIGHTS
First-quarter 2015 revenue from continuing operations was $119.1 million, a decrease of $8.9 million or 7.0%, compared with $128.0 million in the first quarter of 2014. The difference was primarily a result of lower water logistics and rental activities in the Rocky Mountain and Southern Divisions, partly offset by increases in water logistics and recycling activities in the Northeast Division, as well as an increase in water transfer activity in the Eagle Ford Shale region.
Proactive cost-management initiatives across the organization contributed to a $14.2 million reduction in total expenses in the quarter, or a 10.7% year-over-year decline compared with the first quarter of 2014. Total operating expenses for the first quarter 2015 were $118.9 million, compared with $133.1 million in the first quarter of 2014. Savings were primarily attributable to $3.0 million in lower payroll and related expenses with an associated 8% decline in total headcount, $5.6 million in fuel savings, and $3.6 million in lower amortization expense.
Additionally, working capital improvements in the first quarter totaled more than $27.0 million, led by strong collections from our fourth and first quarter activities. The Company's continued disciplined capital spending and expense controls provided $30.6 million in free cash flow during the quarter, compared to a negative $6.7 million in the same period in 2014.
During the first quarter, the Company incurred pre-tax restructuring and exit costs of $0.7 million, related primarily to its previously disclosed exit from the MidCon region and other facility closures.
Pre-tax operating income for the first quarter was $0.2 million, representing a $5.3 million improvement when compared with an operating loss of $5.1 million in the first quarter of 2014.
First-quarter 2015 net loss from continuing operations was $12.0 million, or a loss of $0.44 per diluted share, compared with a loss of $11.9 million, or a loss of $0.48 per diluted share, in the first quarter of 2014. Adjusted net loss from continuing operations, excluding special items, was $11.3 million for the quarter, or a loss of $0.41 per diluted share, compared with adjusted net loss from continuing operations of $8.1 million, or a loss of $0.32 per share in the first quarter of 2014. Due to the valuation allowance against deferred tax assets, the Company does not record tax benefits attributable to its pre-tax loss.
Adjusted EBITDA from continuing operations for the first quarter was $18.7 million, a decrease of 1.0% compared with Adjusted EBITDA from continuing operations of $18.9 million in the first quarter of 2014. Adjusted EBITDA margin for the first quarter was 15.7%, compared with 14.8% in the first quarter of 2014. Margins improved due to proactive cost containment activities during 2015. A reconciliation of excluded items and Adjusted EBITDA to the most directly comparable GAAP financial measure can be found in the financial tables included with this press release.
First-quarter income tax benefit was $24,000 at an effective tax rate near 0%, due to the ongoing valuation allowance on deferred tax assets.
Net cash provided by operating activities from continuing operations was $34.8 million in the first quarter of 2015. Net cash capital expenditures from continuing operations for the period were $4.2 million, and related primarily to targeted investments in the TerrafficientSM solids recycling facility and other transportation-related equipment in the Rocky Mountain Division.
As of March 31, 2015, total debt outstanding, excluding $0.6 million of discounts and premiums, was $592.9 million, consisting of $400.0 million of 2018 Notes, $176.5 million outstanding under the revolving credit facility, and $16.4 million in capital leases. Total liquidity was $57.9 million, comprised of $22.4 of net availability under the revolving credit facility and $35.5 million cash on hand.
The Company closed the sale of its subsidiary Thermo Fluids Inc. to Clean Harbors Inc. on April 11, 2015. Net proceeds at closing of $74.6 million from that transaction were applied to pay down a portion of the Company's revolving credit facility. Following the close of TFI, total debt outstanding was $518.1 million, consisting of $400.0 million of 2018 Notes, $101.8 million outstanding under the amended credit facility, and $16.3 million in capital leases.
On April 13, 2015, the Company entered into an amendment to its credit facility to reduce maximum availability to $195.0 million and removed the accordion feature. Pricing remained the same and no amendment fees were incurred.
As of April 17, 2015, total liquidity was $77.3 million, comprised of $55.4 million of net availability under the revolving credit facility and $21.9 million cash on hand.
Division Highlights
A summary of division results follows:
| Three Months Ended March 31, 2015 |
Rocky Mountain |
Northeast |
Southern |
Corporate |
Total |
|||||
| Revenue |
$ 69,410 |
$ 27,313 |
$ 22,389 |
$ - |
$ 119,112 |
|||||
| Operating income (loss) |
10,192 |
(98) |
(3,014) |
(6,832) |
248 |
|||||
| Operating Margin % |
14.7% |
(0.4)% |
(13.5)% |
NA |
0.2% |
|||||
| Adjusted EBITDA |
18,354 |
3,779 |
2,304 |
(5,731) |
18,706 |
|||||
| Adjusted EBITDA Margin % |
26.4% |
13.8% |
10.3% |
NA |
15.7% |
|||||
| Three Months Ended March 31, 2014 |
Rocky Mountain |
Northeast |
Southern |
Corporate |
Total |
|||||
| Revenue |
$ 81,906 |
$ 19,175 |
$ 26,933 |
$ - |
$ 128,014 |
|||||
| Operating income (loss) |
8,795 |
(3,048) |
(2,232) |
(8,586) |
(5,071) |
|||||
| Operating Margin % |
10.7% |
(15.9)% |
(8.3)% |
NA |
(4.0)% |
|||||
| Adjusted EBITDA |
21,731 |
1,513 |
1,541 |
(5,886) |
18,899 |
|||||
| Adjusted EBITDA Margin % |
26.5% |
7.9% |
5.7% |
NA |
14.8% |
|||||
Rocky Mountain Division (Bakken)
In the Rocky Mountain Division, first-quarter revenue decreased 15.3% to $69.4 million, compared with $81.9 million in the first quarter of 2014. The decrease was primarily related to lower overall drilling and completion activities in the Bakken region, which significantly reduced the demand for equipment rentals, as well as water logistics services
First-quarter Adjusted EBITDA for the Rocky Mountain Division was $18.4 million, a 15.5% decrease, compared with $21.7 million in 2014. First-quarter Adjusted EBITDA margin was 26.4%, compared with a margin of 26.5% in first-quarter 2014.
Northeast Division (Marcellus, Utica)
In the Northeast Division, first-quarter revenue was up 42.4% to $27.3 million, compared with $19.2 million in the first quarter of 2014. The increase was due to overall higher levels of logistics and recycling services, primarily driven by the activities of several large customers in the Marcellus, as well as the addition of a new customer in the Utica.
First-quarter Adjusted EBITDA for the Northeast Division was $3.8 million, a 150% increase, compared with $1.5 million in the first quarter of 2014. First-quarter Adjusted EBITDA margin improved 590 basis points to 13.8%, compared with 7.9% in 2014.
Southern Division (Haynesville, Eagle Ford, Mississippian, Permian)
In the Southern Division, first-quarter revenue decreased 16.9% to $22.4 million, compared with $26.9 million in the first quarter of 2014. The difference was primarily related to an overall decline in fluid logistics and rental services in the MidCon and Haynesville regions, partly offset by an increase in disposal and water midstream services in the Haynesville region, as well as an increase in water transfer activities in the Permian region.
First-quarter Adjusted EBITDA for the Southern Division increased 49.5% to $2.3 million, compared with $1.5 million in the first quarter of fiscal 2014. First-quarter Adjusted EBITDA margin improved 460 basis points to 10.3%, compared with 5.7% in 2014.
Conference Call & Webcast
The Company will host a conference call and webcast to discuss first quarter 2015 results at 12:00 p.m. ET, 9:00 a.m. PT on Monday, May 11, 2015. To participate, please dial +1-877-407-0784 (US) or +1-201-689-8560 (International) and reference conference ID 13608133. The call will be webcast live, and a slide presentation will accompany the call. To access the webcast, go to http://public.viavid.com/index.php?id=114312.
An audio replay of the call will be available approximately one hour following the conclusion of the call. The audio replay can be accessed telephonically through May 18, 2015 by dialing +1-877-870-5176 (US) or +1-858-384-5517 (International) and entering access code 13608133, and a replay will be available by accessing the "Investors" section of the Company's web site at www.nuverra.com.
About Nuverra
Nuverra Environmental Solutions is among the largest companies in the United States dedicated to providing comprehensive and full-cycle environmental solutions to customers in the energy market. Nuverra focuses on the delivery, collection, treatment, recycling, and disposal of restricted solids, water, wastewater, waste fluids and hydrocarbons. The Company continues to expand its suite of environmentally compliant and sustainable solutions to customers who demand stricter environmental compliance and accountability from their service providers. Find additional information about Nuverra on the Company's website, http://www.nuverra.com, and in documents filed with the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov.
Forward-Looking Statements
This information contained herein includes certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include forecasts of growth, revenues, business activity, adjusted EBITDA, pipeline and solids treatment initiatives, and landfill and treatment facility activities, as well as statements regarding possible acquisitions, divestitures, financings, business growth and expansion opportunities, availability of capital, ability to access capital markets, cost-savings initiatives, expected outcome of litigation and other statements that are not historical facts. Actual results may differ materially from results expressed or implied by these forward-looking statements. All forward-looking statements involve risks and uncertainties, including, difficulties encountered in acquiring and integrating businesses; uncertainties in evaluating goodwill and long-lived assets for potential impairment; potential impact of litigation; risks of successfully consummating expected transactions within the timeframes or on the terms contemplated; uncertainty relating to successful negotiation, execution and consummation of all necessary definitive agreements in connection with our strategic initiatives; whether certain markets grow as anticipated; pricing pressures; risks associated with our indebtedness; current and projected future uncertainties in commodities markets, including low oil and/or natural gas prices; changes in customer drilling and completion activities and capital expenditure plans; shifts in production in shale areas where we operate and/or shale areas where we currently do not have operations; control of costs and expenses; and the competitive and regulatory environment. Additional risks and uncertainties are disclosed from time to time in the Company's filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as well as Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Nuverra Environmental Solutions, Inc.
Liz Merritt, VP-Investor Relations & Communications
480-878-7452
[email protected]
Logo - http://photos.prnewswire.com/prnh/20141008/150889
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
|||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
| (In thousands, except per share amounts) |
|||||
| Three Months Ended |
|||||
| March 31, |
|||||
| 2015 |
2014 |
||||
| Revenue: |
|||||
| Non-rental revenue |
$ 107,010 |
$ 109,844 |
|||
| Rental revenue |
12,102 |
18,170 |
|||
| Total revenue |
119,112 |
128,014 |
|||
| Costs and expenses: |
|||||
| Direct operating expenses |
87,999 |
95,379 |
|||
| General and administrative expenses |
12,700 |
16,795 |
|||
| Depreciation and amortization |
17,482 |
20,911 |
|||
| Other, net |
683 |
- |
|||
| Total costs and expenses |
118,864 |
133,085 |
|||
| Operating income (loss) |
248 |
(5,071) |
|||
| Interest expense, net |
(12,588) |
(12,050) |
|||
| Other income (expense), net |
321 |
(420) |
|||
| Loss on extinguishment of debt |
- |
(3,177) |
|||
| Loss from continuing operations before income taxes |
(12,019) |
(20,718) |
|||
| Income tax benefit |
24 |
8,804 |
|||
| Loss from continuing operations |
(11,995) |
(11,914) |
|||
| Income from discontinued operations, net of income taxes |
921 |
459 |
|||
| Net loss attributable to common stockholders |
$ (11,074) |
$ (11,455) |
|||
| Net loss per common share attributable to common stockholders: |
|||||
| Basic and diluted loss from continuing operations |
$ (0.44) |
$ (0.48) |
|||
| Basic and diluted income from discontinued operations |
0.03 |
0.02 |
|||
| Net loss per basic and diluted share |
$ (0.41) |
$ (0.46) |
|||
| Weighted average shares outstanding used in computing net loss per basic and diluted common share |
27,412 |
25,020 |
|||
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
|||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
| (In thousands) |
|||
| March 31, |
December 31, |
||
| 2015 |
2014 |
||
| Assets |
(Unaudited) |
(Note 1) |
|
| Cash and cash equivalents |
$ 35,486 |
$ 13,367 |
|
| Restricted cash |
- |
114 |
|
| Accounts receivable, net |
86,393 |
108,813 |
|
| Inventories |
4,131 |
4,413 |
|
| Prepaid expenses and other receivables |
5,420 |
4,147 |
|
| Deferred income taxes |
3,033 |
3,179 |
|
| Other current assets |
181 |
173 |
|
| Current assets held for sale |
17,711 |
20,466 |
|
| Total current assets |
152,355 |
154,672 |
|
| Property, plant and equipment, net |
466,414 |
475,982 |
|
| Equity investments |
3,793 |
3,814 |
|
| Intangibles, net |
19,046 |
19,757 |
|
| Goodwill |
104,721 |
104,721 |
|
| Other assets |
16,501 |
17,688 |
|
| Long-term assets held for sale |
97,617 |
94,938 |
|
| Total assets |
$ 860,447 |
$ 871,572 |
|
| Liabilities and Equity |
|||
| Accounts payable |
$ 14,118 |
$ 18,859 |
|
| Accrued liabilities |
53,216 |
43,395 |
|
| Current portion of contingent consideration |
9,409 |
9,274 |
|
| Current portion of long-term debt |
5,128 |
4,863 |
|
| Financing obligation to acquire non-controlling interest |
11,000 |
11,000 |
|
| Current liabilities of discontinued operations |
6,924 |
8,802 |
|
| Total current liabilities |
99,795 |
96,193 |
|
| Deferred income taxes |
3,303 |
3,448 |
|
| Long-term portion of debt |
587,158 |
592,455 |
|
| Long-term portion of contingent consideration |
106 |
550 |
|
| Other long-term liabilities |
3,874 |
3,874 |
|
| Long-term liabilities of discontinued operations |
22,332 |
22,105 |
|
| Total liabilities |
716,568 |
718,625 |
|
| Commitments and contingencies |
|||
| Common stock |
29 |
29 |
|
| Additional paid-in capital |
1,367,618 |
1,365,537 |
|
| Treasury stock |
(19,726) |
(19,651) |
|
| Accumulated deficit |
(1,204,042) |
(1,192,968) |
|
| Total equity of Nuverra Environmental Solutions, Inc. |
143,879 |
152,947 |
|
| Total liabilities and equity |
$ 860,447 |
$ 871,572 |
|
| Note 1: The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
|||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
| (In thousands) |
|||||
| Three Months Ended March 31, |
|||||
| 2015 |
2014 |
||||
| Cash flows from operating activities: |
|||||
| Net loss |
$ (11,074) |
$ (11,455) |
|||
| Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||
| Income from discontinued operations, net of income taxes |
(921) |
(459) |
|||
| Depreciation |
16,771 |
16,607 |
|||
| Amortization of intangible assets |
711 |
4,304 |
|||
| Amortization of deferred financing costs |
1,207 |
523 |
|||
| Amortization of original issue discounts and premiums, net |
40 |
36 |
|||
| Stock-based compensation |
789 |
293 |
|||
| Gain on disposal of property, plant and equipment |
(654) |
(1,255) |
|||
| Bad debt expense |
732 |
773 |
|||
| Loss on extinguishment of debt |
- |
3,177 |
|||
| Deferred income taxes |
1 |
(8,804) |
|||
| Other, net |
(418) |
463 |
|||
| Changes in operating assets and liabilities: |
|||||
| Accounts receivable |
21,688 |
(14,902) |
|||
| Prepaid expenses and other receivables |
(1,273) |
(1,982) |
|||
| Accounts payable and accrued liabilities |
6,949 |
12,523 |
|||
| Other assets and liabilities, net |
202 |
(215) |
|||
| Net cash provided by (used in) operating activities from continuing operations |
34,750 |
(373) |
|||
| Net cash provided by operating activities from discontinued operations |
867 |
3,409 |
|||
| Net cash provided by operating activities |
35,617 |
3,036 |
|||
| Cash flows from investing activities: |
|||||
| Proceeds from the sale of property, plant and equipment |
1,968 |
1,551 |
|||
| Purchases of property, plant and equipment |
(6,163) |
(7,743) |
|||
| Net cash used in investing activities from continuing operations |
(4,195) |
(6,192) |
|||
| Net cash used in investing activities from discontinued operations |
(161) |
(1,050) |
|||
| Net cash used in investing activities |
(4,356) |
(7,242) |
|||
| Cash flows from financing activities: |
|||||
| Proceeds from revolving credit facility |
- |
17,725 |
|||
| Payments on revolving credit facility |
(7,000) |
(8,000) |
|||
| Payments for deferred financing costs |
- |
(343) |
|||
| Payments on notes payable and capital leases |
(1,361) |
(1,429) |
|||
| Other financing activities |
(75) |
25 |
|||
| Net cash (used in) provided by financing activities of continuing operations |
(8,436) |
7,978 |
|||
| Net cash provided by financing activities of discontinued operations |
38 |
- |
|||
| Net cash (used in) provided by financing activities |
(8,398) |
7,978 |
|||
| Net increase in cash and cash equivalents |
22,863 |
3,772 |
|||
| Cash and cash equivalents - beginning of period |
15,416 |
9,212 |
|||
| Cash and cash equivalents - end of period |
38,279 |
12,984 |
|||
| Less: cash and cash equivalents of discontinued operations - end of period |
2,793 |
2,788 |
|||
| Cash and cash equivalents of continuing operations - end of period |
$ 35,486 |
$ 10,196 |
|||
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
||||
| UNAUDITED NON-GAAP RECONCILIATIONS |
||||
| (In thousands) |
||||
| This press release contains non-GAAP financial measures as defined by the rules and regulations of the United States Securities and Exchange Commission. A non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations or balance sheets of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are included in the attached financial tables. |
||||
| Reconciliation of Loss from Continuing Operations to EBITDA, Adjusted EBITDA from Continuing Operations and Total Adjusted EBITDA: |
||||
| Three Months Ended March 31, |
||||
| 2015 |
2014 |
|||
| Loss from continuing operations |
$ (11,995) |
$ (11,914) |
||
| Depreciation of property, plant and equipment |
16,771 |
16,607 |
||
| Amortization of intangible assets |
711 |
4,304 |
||
| Interest expense, net |
12,588 |
12,050 |
||
| Income tax benefit |
(24) |
(8,804) |
||
| EBITDA |
18,051 |
12,243 |
||
| Adjustments: |
||||
| Transaction-related costs, including earnout adjustments, net |
(309) |
513 |
||
| Stock-based compensation |
789 |
293 |
||
| Legal and environmental costs, net |
7 |
1,856 |
||
| Restructuring, exit and other costs |
822 |
- |
||
| Loss on extinguishment of debt |
- |
3,177 |
||
| Integration, severance and rebranding costs |
- |
2,072 |
||
| Gain on disposal of assets |
(654) |
(1,255) |
||
| Adjusted EBITDA from continuing operations |
18,706 |
18,899 |
||
| Adjusted EBITDA from discontinued operations |
1,190 |
3,098 |
||
| Total Adjusted EBITDA |
$ 19,896 |
$ 21,997 |
||
| Reconciliation of Income from Discontinued Operations to EBITDA from Discontinued Operations and Adjusted EBITDA from Discontinued Operations: |
||||
| Three Months Ended March 31, |
||||
| 2015 |
2014 |
|||
| Income from discontinued operations |
$ 921 |
$ 459 |
||
| Income tax expense |
265 |
1,696 |
||
| EBITDA from discontinued operations |
1,186 |
2,155 |
||
| Adjustments: |
||||
| Transaction-related costs |
4 |
1,024 |
||
| Gain on disposal of assets |
- |
(81) |
||
| Adjusted EBITDA from discontinued operations |
$ 1,190 |
$ 3,098 |
||
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
||||||||||
| UNAUDITED NON-GAAP RECONCILIATIONS (continued) |
||||||||||
| (In thousands) |
||||||||||
| Reconciliation of Segment Performance to Adjusted EBITDA |
||||||||||
| Rocky Mountain |
Northeast |
Southern |
Corporate |
Total |
||||||
| Three Months Ended March 31, 2015 |
||||||||||
| Revenue |
$ 69,410 |
$ 27,313 |
$ 22,389 |
$ - |
$ 119,112 |
|||||
| Direct operating expenses |
48,425 |
21,496 |
18,078 |
- |
87,999 |
|||||
| General and administrative expenses |
2,056 |
1,904 |
2,078 |
6,662 |
12,700 |
|||||
| Depreciation and amortization |
8,737 |
3,927 |
4,648 |
170 |
17,482 |
|||||
| Operating income (loss) |
10,192 |
(98) |
(3,014) |
(6,832) |
248 |
|||||
| Operating margin % |
14.7% |
(0.4)% |
(13.5)% |
NA |
0.2% |
|||||
| Income (loss) from continuing operations before income taxes |
10,097 |
13 |
(2,935) |
(19,194) |
(12,019) |
|||||
| Income (loss) from continuing operations |
$ 10,097 |
$ 13 |
$ (2,935) |
$ (19,170) |
$ (11,995) |
|||||
| Depreciation and amortization |
8,737 |
3,927 |
4,648 |
170 |
17,482 |
|||||
| Interest expense, net |
109 |
64 |
53 |
12,362 |
12,588 |
|||||
| Income tax benefit |
- |
- |
- |
(24) |
(24) |
|||||
| EBITDA |
$ 18,943 |
$ 4,004 |
$ 1,766 |
$ (6,662) |
$ 18,051 |
|||||
| Adjustments, net |
(589) |
(225) |
538 |
931 |
655 |
|||||
| Adjusted EBITDA from continuing operations |
$ 18,354 |
$ 3,779 |
$ 2,304 |
$ (5,731) |
$ 18,706 |
|||||
| Adjusted EBITDA margin % |
26.4% |
13.8% |
10.3% |
NA |
15.7% |
|||||
| Three Months Ended March 31, 2014 |
Rocky Mountain |
Northeast |
Southern |
Corporate |
Total |
|||||
| Revenue |
$ 81,906 |
$ 19,175 |
$ 26,933 |
$ - |
$ 128,014 |
|||||
| Direct operating expenses |
57,347 |
16,425 |
21,607 |
- |
95,379 |
|||||
| General and administrative expenses |
3,095 |
1,924 |
3,353 |
8,423 |
16,795 |
|||||
| Depreciation and amortization |
12,669 |
3,873 |
4,206 |
163 |
20,911 |
|||||
| Operating income (loss) |
8,795 |
(3,048) |
(2,232) |
(8,586) |
(5,071) |
|||||
| Operating margin % |
10.7% |
(15.9)% |
(8.3)% |
NA |
(4.0)% |
|||||
| Income (loss) from continuing operations before income taxes |
8,683 |
(3,235) |
(2,667) |
(23,499) |
(20,718) |
|||||
| Income (loss) from continuing operations |
$ 8,683 |
$ (3,235) |
$ (2,667) |
$ (14,695) |
$ (11,914) |
|||||
| Depreciation and amortization |
12,669 |
3,873 |
4,206 |
163 |
20,911 |
|||||
| Interest expense, net |
136 |
73 |
105 |
11,736 |
12,050 |
|||||
| Income tax benefit |
- |
- |
- |
(8,804) |
(8,804) |
|||||
| EBITDA |
$ 21,488 |
$ 711 |
$ 1,644 |
$ (11,600) |
$ 12,243 |
|||||
| Adjustments, net |
243 |
802 |
(103) |
5,714 |
6,656 |
|||||
| Adjusted EBITDA from continuing operations |
$ 21,731 |
$ 1,513 |
$ 1,541 |
$ (5,886) |
$ 18,899 |
|||||
| Adjusted EBITDA margin % |
26.5% |
7.9% |
5.7% |
NA |
14.8% |
|||||
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
||||||
| UNAUDITED NON-GAAP RECONCILIATIONS (continued) |
||||||
| (In thousands) |
||||||
| Reconciliation of Special Items to Adjusted Net Loss to EBITDA from Continuing Operations |
||||||
| Three Months Ended March 31, 2015 |
||||||
| As Reported |
Special Items |
As Adjusted |
||||
| Revenue |
$ 119,112 |
$ - |
$ 119,112 |
|||
| Direct operating expenses |
87,999 |
654 |
[A] |
88,653 |
||
| General and administrative expenses |
12,700 |
(935) |
[B] |
11,765 |
||
| Operating income |
248 |
964 |
[C] |
1,212 |
||
| Loss from continuing operations |
(11,995) |
654 |
[D] |
(11,341) |
||
| Basic and diluted loss from continuing operations |
$ (0.44) |
$ (0.41) |
||||
| Loss from continuing operations |
$ (11,995) |
$ (11,341) |
||||
| Depreciation and amortization |
17,482 |
17,482 |
||||
| Interest expense, net |
12,588 |
12,588 |
||||
| Income tax benefit |
(24) |
(23) |
||||
| EBITDA and Adjusted EBITDA from continuing operations |
$ 18,051 |
$ 18,706 |
||||
| Description of 2015 Special Items: |
|||||||
| [A] |
Special items include a gain on sale related to the disposal of certain transportation related assets. |
||||||
| [B] |
Primarily attributable to stock-based compensation, and certain refinancing costs associated with our ABL Facility. |
||||||
| [C] |
Primarily includes the aforementioned adjustments, and a charge of approximately $0.7 million associated with Company's restructuring initiative and other exit related costs from certain shale basins. |
||||||
| [D] |
Primarily includes the aforementioned adjustments, including a net reduction related to a prior acquisition earnout reserve of $0.3 million. Additionally, the Company's effective tax rate for the three months ended March 31, 2015 was zero percent and has been applied to the special items accordingly. |
||||||
| Three Months Ended March 31, 2014 |
||||||
| As Reported |
Special Items |
As Adjusted |
||||
| Revenue |
$ 128,014 |
$ - |
$ 128,014 |
|||
| Direct operating expenses |
95,379 |
1,255 |
[E] |
96,634 |
||
| General and administrative expenses |
16,795 |
(4,318) |
[F] |
12,477 |
||
| Operating loss |
(5,071) |
3,063 |
(2,008) |
|||
| Loss from continuing operations |
(11,914) |
3,827 |
[G] |
(8,087) |
||
| Basic and diluted loss from continuing operations |
$ (0.48) |
$ (0.32) |
||||
| Loss from continuing operations |
$ (11,914) |
$ (8,087) |
||||
| Depreciation and amortization |
20,911 |
20,911 |
||||
| Interest expense, net |
12,050 |
12,050 |
||||
| Income tax benefit |
(8,804) |
(5,975) |
||||
| EBITDA and Adjusted EBITDA from continuing operations |
$ 12,243 |
$ 18,899 |
||||
| Description of 2014 Special Items: |
|||||||
| [E] |
Special items include a gain on sale related to the disposal of certain transportation related assets. |
||||||
| [F] |
Primarily attributable to costs incurred as a result of our accounting and administrative integration efforts, stock-based compensation, and certain legal expenses associated with our Texas Cases litigation. |
||||||
| [G] |
Primarily includes the aforementioned adjustments, along with a charge of $3.2 million in connection with a write-off of a portion of the unamortized deferred financing costs associated with our Amended Revolving Credit Facility, and a charge of $0.4 million associated with a prior acquisition earnout reserve. Additionally, the Company's effective tax rate for the three months ended March 31, 2014 was -42.5% and has been applied to the special items accordingly. |
||||||
| NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
||||
| UNAUDITED NON-GAAP RECONCILIATIONS (continued) |
||||
| (In thousands) |
||||
| Reconciliation of Free Cash Flow from Continuing Operations |
||||
| Three Months Ended March 31, |
||||
| 2015 |
2014 |
|||
| Net cash provided by (used in) operating activities from continuing operations |
$ 34,750 |
$ (373) |
||
| Less: net cash capital expenditures |
(4,195) |
(6,192) |
||
| Free Cash Flow |
$ 30,555 |
$ (6,565) |
||
SOURCE Nuverra Environmental Solutions, Inc.
Share this article