Mammoth Energy Services, Inc. Announces First Quarter 2022 Operational and Financial Results

OKLAHOMA CITY, May 9, 2022 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported financial and operational results for the first quarter ended March 31, 2022.

Financial Overview for the First Quarter 2022:

Total revenue was $62.3 million for the first quarter of 2022, as compared to $66.8 million for the same quarter of 2021 and $57.2 million for the fourth quarter of 2021.

Net loss for the first quarter of 2022 was $14.8 million, or a $0.32 loss per share, as compared to $12.4 million, or a $0.27 loss per share, for the same quarter of 2021, and $13.3 million, or a $0.28 loss per share, for the fourth quarter of 2021.

Adjusted EBITDA (as defined and reconciled below) was $9.3 million for the first quarter of 2022, as compared to $9.2 million for the same quarter of 2021 and $17.2 million for the fourth quarter of 2021.

Arty Straehla, Chief Executive Officer of Mammoth commented, "We maintained positive top line momentum during the first quarter of 2022, which we believe is a trend that will continue into the second quarter and back half of 2022. In our well completions and drilling services segments, pricing and utilization rates continue to increase and grow revenue in a favorable commodity environment with elevated activity. Similarly, strong industry tailwinds persist in the infrastructure space where we continue to compete for new project work. During the first quarter of 2022, the revenue contribution from our infrastructure services segment increased as a percentage of our total revenue and we are seeing an increasing number of opportunities in this segment. I am proud of our team's commitment and hard work to mitigate the myriad of external challenges in today's economic environment as we remain disciplined with our spending to continue to improve Mammoth's cost structure and enhance value for our stockholders."

Infrastructure Services

Mammoth's infrastructure services division contributed revenue of $23.0 million, or approximately 37% of Mammoth's total revenue, for the first quarter of 2022, as compared to $30.2 million for the same quarter of 2021 and $19.7 million for the fourth quarter of 2021. The decrease in revenue compared to the same quarter of 2021 is primarily due to a decline in storm activity, resulting in lower storm restoration revenue.

Well Completion Services

Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $23.9 million on 699 stages for the first quarter of 2022, as compared to $23.0 million on 445 stages for the same quarter of 2021 and $21.3 million on 891 stages for the fourth quarter of 2021. On average, 1.6 of the Company's fleets were active for the first quarter of 2022, compared to an average utilization of 0.9 fleets during the same quarter of 2021 and 1.6 fleets during the fourth quarter of 2021. As of May 5, 2022, we were operating three of our six pressure pumping fleets.

Natural Sand Proppant Services

Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $9.2 million for the first quarter of 2022, as compared to $8.7 million for the same quarter of 2021 and $10.8 million for the fourth quarter of 2021. In the first quarter of 2022, the Company sold approximately 329,000 tons of sand at an average sales price of $21.44 per ton, as compared to sales of approximately 171,000 tons of sand at an average sales price of $16.83 per ton during the same quarter of 2021. In the fourth quarter of 2021, sales were approximately 270,000 tons of sand at an average price of $17.84 per ton.

Drilling Services

Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $2.9 million for the first quarter of 2022, as compared to $0.9 million for the same quarter of 2021 and $1.0 million for the fourth quarter of 2021. The increase is due to an increase in utilization for Mammoth's directional drilling business.

Other Services

Mammoth's other services, including aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $4.7 million for the first quarter of 2022, as compared to $4.7 million for the same quarter of 2021 and $4.9 million for the fourth quarter of 2021.

Selling, General and Administrative Expenses

Selling, general and administrative ("SG&A") expenses were $8.7 million for the first quarter of 2022, as compared to $18.0 million for the same quarter of 2021 and $3.5 million for the fourth quarter of 2021.

Following is a breakout of SG&A expense (in thousands):


Three Months Ended


March 31,


December 31,


2022


2021


2021

Cash expenses:






  Compensation and benefits

$            2,983


$            4,694


$            3,685

  Professional services(a)

3,637


581


(2,383)

  Other(b)

1,906


2,342


1,994

     Total cash SG&A expense

8,526


7,617


3,296

Non-cash expenses:






  Bad debt provision(c)

(99)


10,125


12

  Stock based compensation

241


282


241

     Total non-cash SG&A expense

142


10,407


253

          Total SG&A expense

$            8,668


$          18,024


$            3,549



a.

Certain legal expenses totaling $2.8 million and $5.4 million were reclassified to Other, net for the three months ended March 31, 2021 and December 31, 2021, respectively. The increase in professional fees is primarily due to an increase in legal expenses for matters related to ongoing operations.

b.

Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.

c.

The bad debt provision for the three months ended March 31, 2021 includes $10.0 million related to the Stingray Pressure Pumping and Muskie contracts with Gulfport.

SG&A expenses, as a percentage of total revenue, were 14% for the first quarter of 2022, as compared to 27% for the same quarter of 2021 and 6% for the fourth quarter of 2021.

Liquidity

As of March 31, 2022, Mammoth had cash on hand of $8.1 million, outstanding borrowings under its revolving credit facility of $86.0 million and $11.5 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $7.5 million reserve out of the available borrowing capacity. As of March 31, 2022, Mammoth had total liquidity of $19.6 million.

As of May 5, 2022, Mammoth had cash on hand of $6.9 million and outstanding borrowings under its revolving credit facility of $84.7 million. As of May 5, 2022, the Company had $10.3 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.5 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


March 31,


December 31,


2022


2021


2021

Infrastructure services(a)

$              398


$              189


$              153

Well completion services(b)

801


508


1,135

Natural sand proppant services(c)


408


55

Drilling services(d)

2


37


1

Other(e)

60


102


25

Eliminations

(79)


(96)


Total capital expenditures

$            1,182


$            1,148


$            1,369



a.

Capital expenditures primarily for truck, tooling and equipment purchases for the periods presented.

b.

Capital expenditures primarily for upgrades to our pressure pumping fleet for the periods presented.

c.

Capital expenditures primarily for maintenance for the periods presented.

d.

Capital expenditures primarily for directional drilling equipment for the periods presented.

e.

Capital expenditures primarily for equipment for the Company's rental businesses for the periods presented.

We anticipate that our capital expenditures for 2022 will be approximately $12 million.

Conference Call Information

Mammoth will host a conference call on Monday, May 9, 2022 at 5:00 p.m. Central time (6:00 p.m. Eastern time) to discuss its first quarter 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.

About Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth's suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.

Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com

Rick Black / Ken Dennard
Dennard Lascar Investor Relations
TUSK@dennardlascar.com

Forward-Looking Statements and Cautionary Statements

This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "plan," "estimate," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "potential," "would," "may," "probable," "likely" and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management's current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: 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 current Russian/Ukrainian military conflict 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; 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; 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, including the adverse impact of the recent settlement with MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; Mammoth's ability to continue to comply with, or if applicable, obtain a waiver of forecasted or actual noncompliance with certain financial covenants and comply with other terms and conditions under our recently amended revolving credit facility; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.

Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.

MAMMOTH ENERGY SERVICES, INC. 

CONSOLIDATED BALANCE SHEETS 


ASSETS


March 31,


December 31,



2022


2021

CURRENT ASSETS


(in thousands)

     Cash and cash equivalents


$                      8,118


$                       9,899

     Short-term investment


1,763


1,762

     Accounts receivable, net


411,931


407,550

     Receivables from related parties, net


313


88

     Inventories


10,358


8,366

     Prepaid expenses


9,086


12,381

     Other current assets


628


737

          Total current assets


442,197


440,783






Property, plant and equipment, net


161,005


176,586

Sand reserves


64,628


64,641

Operating lease right-of-use assets


11,675


12,168

Intangible assets, net


2,366


2,561

Goodwill


11,717


11,717

Deferred income tax asset


5,180


8,094

Other non-current assets


3,679


4,342

          Total assets


$                   702,447


$                   720,892

LIABILITIES AND EQUITY





CURRENT LIABILITIES





     Accounts payable


$                     38,780


$                     37,560

     Accrued expenses and other current liabilities


55,750


62,516

     Current operating lease liability


5,710


5,942

     Current portion of long-term debt


1,486


1,468

     Income taxes payable


42,950


42,748

          Total current liabilities


144,676


150,234






Long-term debt, net of current portion


87,458


85,240

Deferred income tax liabilities


1,431


865

Long-term operating lease liability


5,731


5,918

Asset retirement obligation


3,943


3,720

Other long-term liabilities


10,364


11,693

          Total liabilities


253,603


257,670






COMMITMENTS AND CONTINGENCIES










EQUITY





     Equity:





       Common stock, $0.01 par value, 200,000,000 shares authorized, 47,184,065 and
       46,684,065 issued and outstanding at March 31, 2022 and December 31, 2021


472


467

       Additional paid in capital


538,457


538,221

       Accumulated deficit


(87,352)


(72,535)

     Accumulated other comprehensive loss


(2,733)


(2,931)

          Total equity


448,844


463,222

          Total liabilities and equity


$                   702,447


$                   720,892

 

MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



Three Months Ended


March 31,


December 31,


2022


2021


2021


(in thousands, except per share amounts)

REVENUE


     Services revenue

$           53,667


$           42,691


$           46,262

     Services revenue - related parties

274


14,986


104

     Product revenue

8,357


6,982


10,867

     Product revenue - related parties


2,145


Total revenue

62,298


66,804


57,233







COST AND EXPENSES






     Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of
     $15,355, $18,989 and $15,953, respectively, for the three months ended March 31, 2022, March
     31, 2021 and December 31, 2021)

46,567


42,062


41,572

     Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and
     accretion of $0, $0 and $0, respectively, for the three months ended March 31, 2022, March 31,
     2021 and December 31, 2021)

135


109


134

     Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of
     $1,792, $2,137 and $1,943, respectively, for the three months ended March 31, 2022, March 31,
     2021 and December 31, 2021)

7,778


5,909


4,581

     Selling, general and administrative

8,668


17,831


3,549

     Selling, general and administrative - related parties


193


     Depreciation, depletion, amortization and accretion

17,167


21,146


17,916

     Impairment of goodwill



891

     Impairment of other long-lived assets



665

Total cost and expenses

80,315


87,250


69,308

Operating loss

(18,017)


(20,446)


(12,075)







OTHER INCOME (EXPENSE)






     Interest expense, net

(2,349)


(1,225)


(2,528)

     Other income, net

9,237


7,123


4,813

     Other expense, net - related parties


(515)


Total other income

6,888


5,383


2,285

Loss before income taxes

(11,129)


(15,063)


(9,790)

Provision (benefit) for income taxes

3,688


(2,623)


3,507

Net loss

$          (14,817)


$          (12,440)


$          (13,297)







OTHER COMPREHENSIVE LOSS






     Foreign currency translation adjustment, net of tax of $0, ($42) and $0, respectively, for the
     three months ended March 31, 2022, March 31, 2021 and December 31, 2021)

198


168


16

Comprehensive loss

$          (14,619)


$          (12,272)


$          (13,281)







Net loss per share (basic)

$              (0.32)


$              (0.27)


$              (0.28)

Net loss per share (diluted)

$              (0.32)


$              (0.27)


$              (0.28)

Weighted average number of shares outstanding (basic)

46,845


45,932


46,683

Weighted average number of shares outstanding (diluted)

46,845


45,932


46,683

 

MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS



Three Months Ended


March 31,


2022


2021


(in thousands)

Cash flows from operating activities:




     Net loss

$                        (14,817)


$                        (12,440)

     Adjustments to reconcile net loss to cash (used in) provided by operating activities:




          Stock based compensation

241


344

          Depreciation, depletion, accretion and amortization

17,167


21,146

          Amortization of debt origination costs

186


142

          Bad debt (recoveries) expense

(99)


10,125

          Gain on disposal of property and equipment

(593)


(615)

          Deferred income taxes

3,481


(5,061)

          Other

535


558

          Changes in assets and liabilities:




               Accounts receivable, net

(3,898)


23,437

               Receivables from related parties

(225)


(14,611)

               Inventories

(1,992)


664

               Prepaid expenses and other assets

3,404


3,105

               Other current assets - related parties


(2,228)

               Accounts payable

1,041


(4,285)

               Accrued expenses and other liabilities

(7,013)


(8,516)

               Income taxes payable

201


2,469

Net cash (used in) provided by operating activities

(2,381)


14,234





Cash flows from investing activities:




     Purchases of property and equipment

(1,182)


(1,148)

     Proceeds from disposal of property and equipment

1,038


1,457

Net cash (used in) provided by investing activities

(144)


309





Cash flows from financing activities:




     Borrowings on long-term debt

37,550


1,500

     Repayments of long-term debt

(35,317)


(15,617)

     Payments on sale-leaseback transaction

(868)


(330)

     Principal payments on financing leases and equipment financing notes

(629)


(577)

Net cash provided by (used in) financing activities

736


(15,024)

Effect of foreign exchange rate on cash

8


25

Net change in cash and cash equivalents

(1,781)


(456)

Cash and cash equivalents at beginning of period

9,899


14,822

Cash and cash equivalents at end of period

$                           8,118


$                          14,366





Supplemental disclosure of cash flow information:




     Cash paid for interest

$                           1,754


$                           1,093

     Cash paid for income taxes, net of refunds received

$                                 6


$                               (32)

Supplemental disclosure of non-cash transactions:




     Purchases of property and equipment included in accounts payable

$                           1,707


$                           1,964

 

MAMMOTH ENERGY SERVICES, INC.

SEGMENT INCOME STATEMENTS

(in thousands)


Three months ended March 31, 2022

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$           23,009

$           23,630

$            8,347

$            2,852

$            4,460

$                 —

$           62,298

Intersegment revenues

244

832

3

272

(1,351)

Total revenue

23,009

23,874

9,179

2,855

4,732

(1,351)

62,298

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

18,887

21,839

7,788

2,372

3,594

54,480

Intersegment cost of revenues

16

1,031

160

70

(1,277)

Total cost of revenue

18,903

22,870

7,788

2,532

3,664

(1,277)

54,480

Selling, general and administrative

4,645

2,039

828

292

864

8,668

Depreciation, depletion, amortization and accretion

4,314

6,444

1,795

1,680

2,934

17,167

Operating loss

(4,853)

(7,479)

(1,232)

(1,649)

(2,730)

(74)

(18,017)

Interest expense, net

1,542

371

162

104

170

2,349

Other (income) expense, net

(9,587)

(49)

(79)

478

(9,237)

Income (loss) before income taxes

$            3,192

$           (7,801)

$           (1,315)

$           (1,753)

$           (3,378)

$                (74)

$         (11,129)

 

Three months ended March 31, 2021

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$           30,200

$           22,901

$            8,705

$               919

$            4,079

$                 —

$           66,804

Intersegment revenues

54

14

640

(708)

Total revenue

30,200

22,955

8,705

933

4,719

(708)

66,804

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

27,377

9,003

5,862

1,604

4,234

48,080

Intersegment cost of revenues

45

394

269

(708)

Total cost of revenue

27,422

9,397

5,862

1,604

4,503

(708)

48,080

Selling, general and administrative

3,739

10,612

2,049

422

1,202

18,024

Depreciation, depletion, amortization and accretion

6,667

6,683

2,140

2,165

3,491

21,146

Operating loss

(7,628)

(3,737)

(1,346)

(3,258)

(4,477)

(20,446)

Interest expense, net

669

254

93

63

146

1,225

Other (income) expense, net

(6,486)

439

(794)

(9)

242

(6,608)

Loss before income taxes

$           (1,811)

$           (4,430)

$              (645)

$           (3,312)

$           (4,865)

$                 —

$         (15,063)

 

Three months ended December 31, 2021

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$           19,714

$           21,251

$           10,849

$               963

$            4,456

$                 —

$           57,233

Intersegment revenues

25

69

414

(508)

Total revenue

19,714

21,276

10,849

1,032

4,870

(508)

57,233

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

20,096

16,443

4,601

1,363

3,784

46,287

Intersegment cost of revenues

31

321

156

(508)

Total cost of revenue

20,127

16,764

4,601

1,363

3,940

(508)

46,287

Selling, general and administrative

(1,017)

2,164

1,243

309

850

3,549

Depreciation, depletion, amortization and accretion

4,380

6,709

1,946

1,812

3,069

17,916

Impairment of goodwill

891


891

Impairment of other long-lived assets

665

665

Operating loss

(5,332)

(4,361)

3,059

(2,452)

(2,989)

(12,075)

Interest expense, net

1,613

419

183

116

197

2,528

Other (income) expense, net

(4,131)

(121)

18

23

(602)

(4,813)

(Loss) income before income taxes

$           (2,814)

$           (4,659)

$            2,858

$           (2,591)

$           (2,584)

$                 —

$           (9,790)

MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion expense, impairment of goodwill, impairment of other long-lived assets, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets, 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


March 31,


December 31,

Reconciliation of Adjusted EBITDA to net loss:

2022


2021


2021

Net loss

$           (14,817)


$           (12,440)


$           (13,297)

Depreciation, depletion, amortization and accretion expense

17,167


21,146


17,916

Impairment of goodwill



891

Impairment of other long-lived assets



665

Stock based compensation

241


344


242

Interest expense, net

2,349


1,225


2,528

Other income, net

(9,237)


(6,608)


(4,813)

Provision (benefit) for income taxes

3,688


(2,623)


3,507

Interest on trade accounts receivable

9,862


8,158


9,571

Adjusted EBITDA

$              9,253


$              9,202


$            17,210

 

Infrastructure Services



Three Months Ended


March 31,


December 31,

Reconciliation of Adjusted EBITDA to net income (loss):

2022


2021


2021

Net income (loss)

$                125


$            (4,240)


$            (5,992)

Depreciation and amortization expense

4,314


6,667


4,380

Impairment of goodwill



891

Impairment of other long-lived assets



665

Stock based compensation

98


138


100

Interest expense

1,542


669


1,613

Other income, net

(9,587)


(6,486)


(4,131)

Provision for income taxes

3,067


2,429


3,175

Interest on trade accounts receivable

9,862


8,673


9,571

Adjusted EBITDA

$             9,421


$             7,850


$            10,272

 

Well Completion Services



Three Months Ended


March 31,


December 31,

Reconciliation of Adjusted EBITDA to net loss:

2022


2021


2021

Net loss

$            (7,801)


$            (4,430)


$            (4,659)

Depreciation and amortization expense

6,444


6,683


6,709

Stock based compensation

87


83


80

Interest expense

371


254


419

Other (income) expense, net

(49)


439


(121)

Interest on trade accounts receivable


(514)


Adjusted EBITDA

$               (948)


$             2,515


$             2,428

 

Natural Sand Proppant Services



Three Months Ended


March 31,


December 31,

Reconciliation of Adjusted EBITDA to net (loss) income:

2022


2021


2021

Net (loss) income

$            (1,315)


$               (645)


$             2,858

Depreciation, depletion, amortization and accretion expense

1,795


2,140


1,946

Stock based compensation

34


64


39

Interest expense

162


93


183

Other (income) expense, net

(79)


(794)


18

Interest on trade accounts receivable


(1)


Adjusted EBITDA

$                597


$                857


$             5,044

 

Drilling Services



Three Months Ended


March 31,


December 31,

Reconciliation of Adjusted EBITDA to net loss:

2022


2021


2021

Net loss

$            (1,753)


$            (3,312)


$            (2,590)

Depreciation expense

1,680


2,165


1,812

Stock based compensation

5


38


5

Interest expense

104


63


116

Other (income) expense, net


(9)


23

Adjusted EBITDA

$                  36


$            (1,055)


$               (634)

 

Other Services(a)



Three Months Ended


March 31,


December 31,

Reconciliation of Adjusted EBITDA to net (loss) income:

2022


2021


2021

Net (loss) income

$            (3,999)


$                187


$            (2,915)

Depreciation, amortization and accretion expense

2,934


3,491


3,069

Stock based compensation

17


21


18

Interest expense, net

170


146


197

Other expense (income), net

478


242


(602)

Provision (benefit) for income taxes

621


(5,052)


332

Adjusted EBITDA

$                221


$               (965)


$                  99



a.

Includes results for Mammoth's aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing and corporate related activities. The Company's corporate related activities do not generate revenue.

Adjusted Net Loss and Adjusted Loss per Share

Adjusted net loss and adjusted basic and diluted 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 loss as net loss before impairment of goodwill and impairment of other long-lived assets. Mammoth defines adjusted basic and diluted loss per share as 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 loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.


Three Months Ended


March 31,


December 31,


2022


2021


2021


(in thousands, except per share amounts)

Net loss, as reported

$          (14,817)


$          (12,440)


$          (13,297)

     Impairment of goodwill



891

     Impairment of other long-lived assets



665

Adjusted net loss

$          (14,817)


$          (12,440)


$          (11,741)







Basic loss per share, as reported

$              (0.32)


$              (0.27)


$              (0.28)

     Impairment of goodwill



0.02

     Impairment of other long-lived assets



0.01

Adjusted basic loss per share

$              (0.32)


$              (0.27)


$              (0.25)







Diluted loss per share, as reported

$              (0.32)


$              (0.27)


$              (0.28)

     Impairment of goodwill



0.02

     Impairment of other long-lived assets



0.01

Adjusted diluted loss per share

$              (0.32)


$              (0.27)


$              (0.25)

 

Cision View original content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-first-quarter-2022-operational-and-financial-results-301542999.html

SOURCE Mammoth Energy Services, Inc.

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