SELECT ENERGY SERVICES REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS AND PROVIDES OPERATIONAL UPDATES

Revenue of $335.9 million generated during the second quarter of 2022, up 14% sequentially from the first quarter of 2022

Net income of $14.6 million & Adjusted EBITDA of $47.7 million during the second quarter of 2022

Improved gross margin before depreciation and amortization across all three segments while maintaining a positive net cash position

HOUSTON, Aug. 2, 2022 /PRNewswire/ -- Select Energy Services, Inc. (NYSE: WTTR) ("Select" or the "Company"), a leading provider of sustainable water and chemical solutions to the energy industry, today announced its financial results for the quarter ended June 30, 2022.

John Schmitz, Chairman of the Board, President and CEO, stated, "The second quarter proved to be a significant step forward in the continued fulfillment of our strategy to improve and bolster the base business, advance our technology, sustainability and diversification efforts, and execute on strategic M&A. Supported by 14% sequential revenue growth, we significantly improved our profitability during the second quarter with Net Income and Adjusted EBITDA growing 83% and 48%, respectively, quarter over quarter. Reinforced by a steadily improving activity backdrop and an increasingly tight labor and equipment supply environment, we continue to see pricing improvements across each of our segments.

"We are also making progress on the integration of our recent acquisitions, capturing continued efficiencies and cost synergy realizations, which has contributed to sequential margin improvement across each of our segments. Additionally on the cost synergy front, SG&A costs decreased by 6% sequentially to below 8% of revenue, a threshold we last achieved in 2018.

"We have continued ramping up the buildout supporting the consolidated infrastructure footprint we've assembled through our recent acquisitions as well. During the second quarter of 2022, we signed a 5-year agreement to tie in an operator's existing water distribution and gathering pipeline system in Upton County, Texas, interconnecting with two of our existing recycling facilities. This interconnection will allow us to efficiently gather produced water, transport recycled volumes between our two existing facilities and dispose of water, if necessary, broadening the commercialization opportunities of the systems and allowing for more efficient management of water needs across multiple operators in the area.

"In addition, during the second quarter we commenced operations at our two most recently announced recycling facilities in the Northern Delaware and Rockies regions, adding an incremental 75,000 barrels per day of recycling capacity. With this increased recycling capacity, we are well on our way towards achieving the 2022 recycling targets tied to our sustainability-linked credit facility. We have a strong backlog of additional development opportunities and I look forward to executing on additional projects in the second half of the year. As previously announced, I'm also pleased to have issued our inaugural annual sustainability report during the second quarter. While recycling remains a top priority for us, we are excited about many of our other near-term sustainability initiatives discussed in the sustainability report including additional technology, emissions reduction, and green chemistry R&D investments.

"Ultimately, I am very pleased with our recent financial performance, supported by our recent acquisitions, pricing improvements, organic growth opportunities and our other strategic investments. I look forward to building upon our recent positive results with further improvements to our revenue and profitability, while meaningfully expanding our free cash flow generation in the second half of the year," concluded Schmitz.

Consolidated Financial Information

Revenue for the second quarter of 2022 was $335.9 million as compared to $294.8 million in the first quarter of 2022 and $161.1 million in the second quarter of 2021. Net income for the second quarter of 2022 was $14.6 million as compared to $8.0 million in the first quarter of 2022 and a net loss of $19.6 million in the second quarter of 2021.

For the second quarter of 2022, gross profit was $35.7 million, as compared to $24.7 million in the first quarter of 2022 and a gross loss of $1.6 million in the second quarter of 2021. Total gross margin was 10.6% in the second quarter of 2022 as compared to 8.4% in the first quarter of 2022 and (1.0)% in the second quarter of 2021. Gross margin before depreciation and amortization ("D&A") for the second quarter of 2022 was 19.3% as compared to 17.4% for the first quarter of 2022 and 12.0% for the second quarter of 2021.

SG&A during the second quarter of 2022 was $26.7 million as compared to $28.3 million during the first quarter of 2022 and $15.9 million during the second quarter of 2021. SG&A during the first and second quarters of 2022 was impacted by non-recurring transaction costs of $3.6 million and $0.6 million, respectively.

Adjusted EBITDA was $47.7 million in the second quarter of 2022 as compared to $32.2 million in the first quarter of 2022 and $7.6 million in the second quarter of 2021.  Adjusted EBITDA during the first and second quarters of 2022 was impacted by the deduction of $11.4 million and $5.6 million, respectively, of non-recurring bargain purchase price gains that benefited Net Income during the quarters related to the Company's recent acquisition activity. Additionally, Adjusted EBITDA was impacted by $2.9 million of non-recurring transaction costs, $1.0 million of non-cash losses on asset sales, $0.2 million in lease abandonment costs, and $0.2 million in other adjustments during the second quarter of 2022. Non-cash compensation expense accounted for an additional $3.9 million adjustment during the second quarter of 2022. Please refer to the end of this release for reconciliations of gross profit (loss) before D&A (non-GAAP measure) to gross profit (loss) and of Adjusted EBITDA (non-GAAP measure) to net income (loss).

Business Segment Information

The Water Services segment generated revenues of $196.0 million in the second quarter of 2022 as compared to $163.6 million in the first quarter of 2022 and $76.7 million in the second quarter of 2021.  Gross margin before D&A for Water Services was 19.4% in the second quarter of 2022 as compared to 16.2% in the first quarter of 2022 and 7.7% in the second quarter of 2021. Revenues for this segment improved 19.8% sequentially, with approximately 70% of the revenue growth from the existing business and approximately 30% of the growth from a full quarter contribution from the recent Nuverra acquisition that closed during the first quarter of 2022. Looking at the third quarter of 2022, the Company expects to see mid- to high-single digit percentage revenue growth with modest continued improvements to gross margins before D&A, supported by continued pricing improvements and market activity.

The Water Infrastructure segment generated revenues of $60.3 million in the second quarter of 2022 as compared to $58.6 million in the first quarter of 2022 and $33.3 million in the second quarter of 2021. Gross margin before D&A for Water Infrastructure was 25.5% in the second quarter of 2022 as compared to 24.2% in the first quarter of 2022 and 21.3% in the second quarter of 2021.  Revenues improved 3.0% sequentially, with strong incremental margins driven by increased volumes at our recycling facilities and a full quarter contribution from the recent Nuverra acquisition, offset by seasonal volume decreases at our Bakken pipeline facilities. For the third quarter of 2022, the Company anticipates mid-single digit percentage revenue growth, with gross margins before D&A in mid- to high-20 percent range, supported by continued growth in recycled water volumes.  

The Oilfield Chemicals segment generated revenues of $79.6 million in the second quarter of 2022 as compared to $72.6 million in the first quarter of 2022 and $51.1 million in the second quarter of 2021.  Gross margin before D&A for Oilfield Chemicals was 14.6% in the second quarter of 2022 as compared to 14.4% in the first quarter of 2022 and 12.5% in the second quarter of 2021. Revenues improved 9.7% sequentially, exceeding expectations, driven by strong growth in the Permian and Rockies regions. Supported by the recent strong revenue growth in the first and second quarters of 2022, the Company anticipates relatively stable to modestly improving revenues in this segment during the third quarter of 2022 with gross margins before D&A of at least 15% as operational efficiencies and pricing improvements counteract rising raw materials costs.

Cash Flow and Capital Expenditures

Cash flow from operations for the second quarter of 2022 was $11.1 million as compared to ($18.6) million in the first quarter of 2022 and ($7.6) million in the second quarter of 2021. Cash flow from operations during the second quarter of 2022 was significantly impacted by a $31.5 million use of cash to fund the working capital needs of the business resulting from growing revenues and the ongoing integration efforts of the recent acquisitions.

Net capital expenditures for the second quarter of 2022 were $9.9 million, comprised of $15.5 million of capital expenditures meaningfully offset by $5.6 million of cash proceeds from asset sales, including the divestment of underutilized equipment and real estate from recently acquired businesses. Cash flow from operations less net capital expenditures was $1.1 million during the second quarter of 2022.

Cash flow used in investing activities during the second quarter of 2022 included an outflow of $1.1 million related to working capital settlements for recent acquisitions, while cash flow from financing activities accounted for another $0.9 million of cash outflows.

Balance Sheet and Capital Structure

Total cash and cash equivalents were $25.7 million as of June 30, 2022 as compared to $24.8 million as of March 31, 2022. The Company had no borrowings outstanding under its sustainability-linked credit facility as of June 30, 2022 or March 31, 2022.

As of June 30, 2022 and March 31, 2022, the borrowing base under the sustainability-linked credit facility was $216.5 million and $204.1 million, respectively. The Company had available borrowing capacity under its sustainability-linked credit facility as of June 30, 2022 and March 31, 2022, of approximately $195.6 million and $188.5 million, respectively, after giving effect to $20.9 million and $15.6 million of outstanding letters of credit as of June 30, 2022 and March 31, 2022.

Total liquidity was $221.3 million as of June 30, 2022, as compared to $213.3 million as of March 31, 2022. The Company had 92,833,593 weighted average Class A shares outstanding and 16,221,101 weighted average Class B shares outstanding during the second quarter of 2022.

2021 Sustainability Report

On April 28, 2022, Select issued its 2021 Sustainability Report, the Company's inaugural release. Select's 2021 Sustainability Report highlights the policies, processes, procedures and performance by which Select establishes and advances Environmental, Social, and Governance ("ESG") goals and criteria, as well as how the Company aims to act as a force for environmental stewardship and promote sustainable development in communities in which it operates. The report reviews the application of Select's business principles and supporting policies across the business. The report includes information based on internal discussions, external stakeholder feedback, and consultations with third-party experts. Select intends to regularly report on our ESG policies, procedures, and performance, both on our website and through our annual Sustainability Report. Readers are encouraged to read the report in its entirety, which is accessible at https://www.selectenergy.com/sustainability/.

Conference Call

Select has scheduled a conference call on Wednesday, August 3, 2022 at 11:00 a.m. Eastern time / 10:00 a.m. Central time.  Please dial 201-389-0872 and ask for the Select Energy Services call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address http://investors.selectenergy.com/events-and-presentations.  A telephonic replay of the conference call will be available through August 17, 2022 and may be accessed by calling 201-612-7415 using passcode 13731255#.  A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days. 

About Select Energy Services, Inc.

Select Energy Services, Inc. (collectively, with its consolidated subsidiaries, referred to as "Select" or the "Company") is a leading provider of sustainable water and chemical solutions to the energy industry. Select develops, manufactures and delivers a full suite of chemical products for use in oil and gas well completion and production operations as well as integration into the full water life-cycle. These solutions are supported by the Company's critical water infrastructure assets and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of oilfield water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the continued success of the Company.  For more information, please visit Select's website, http://www.selectenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this communication other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "could," "believe," "anticipate," "expect," "project," "will," "estimate" and other similar expressions. Although we believe that the expectations reflected, and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could materially impact such forward-looking statements include, but are not limited to: the severity and duration of world health events, including the COVID-19 pandemic, which had a negative impact on our business; the global macroeconomic uncertainty related to the Russia-Ukraine war; actions by the members of OPEC+ with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with supply limitations; 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; the level of capital spending and access to capital markets by oil and gas companies, trends and volatility in oil and gas prices, and our ability to manage through such volatility; and other factors discussed or referenced in the "Risk Factors" section of our most recent Annual Report on Form 10-K and those set forth from time to time in our other filings with the SEC. Investors should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

WTTR-ER

 

SELECT ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except share and per share data)





















Three months ended


Six months ended




June 30, 2022


March 31, 2022


June 30, 2021


June 30, 2022


June 30, 2021


Revenue

















Water Services


$

195,996


$

163,606


$

76,651


$

359,602


$

140,874


Water Infrastructure



60,284



58,554



33,326



118,838



71,129


Oilfield Chemicals



79,623



72,609



51,140



152,232



92,856


Total revenue



335,903



294,769



161,117



630,672



304,859


Costs of revenue

















Water Services



158,060



137,046



70,745



295,106



133,069


Water Infrastructure



44,939



44,378



26,237



89,317



52,636


Oilfield Chemicals



67,988



62,163



44,754



130,151



82,520


Other



1







1




Depreciation and amortization



29,253



26,500



21,018



55,753



42,668


Total costs of revenue



300,241



270,087



162,754



570,328



310,893


Gross profit (loss)



35,662



24,682



(1,637)



60,344



(6,034)


Operating expenses

















Selling, general and administrative



26,695



28,315



15,890



55,010



35,784


Depreciation and amortization



526



567



624



1,093



1,273


Lease abandonment costs



162



91



222



253



326


Total operating expenses



27,383



28,973



16,736



56,356



37,383


Income (loss) from operations



8,279



(4,291)



(18,373)



3,988



(43,417)


Other income (expense)

















Gain (loss) on sales of property and equipment and divestitures, net



731



1,653



(1,657)



2,384



(2,236)


Interest expense, net



(494)



(720)



(400)



(1,214)



(835)


Foreign currency (loss) gain, net



(6)



3



4



(3)



7


Bargain purchase gain



5,607



11,434





17,041




Other



875



249



895



1,124



(734)


Income (loss) before income tax (expense) benefit



14,992



8,328



(19,531)



23,320



(47,215)


Income tax (expense) benefit



(182)



(214)



(84)



(396)



179


Equity in losses of unconsolidated entities



(229)



(129)





(358)




Net income (loss)



14,581



7,985



(19,615)



22,566



(47,036)


Less: net (income) loss attributable to noncontrolling interests



(2,078)



(1,183)



3,048



(3,261)



7,362


Net income (loss) attributable to Select Energy Services, Inc.


$

12,503


$

6,802


$

(16,567)


$

19,305


$

(39,674)



















Net income (loss) per share attributable to common stockholders:

















Class A—Basic


$

0.13


$

0.07


$

(0.19)


$

0.21


$

(0.47)


Class B—Basic


$


$


$


$


$



















Net income (loss) per share attributable to common stockholders:

















Class A—Diluted


$

0.13


$

0.07


$

(0.19)


$

0.20


$

(0.47)


Class B—Diluted


$


$


$


$


$


 

SELECT ENERGY SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)













June 30, 2022


March 31, 2022


December 31, 2021



(unaudited)


(unaudited)



Assets










Current assets










Cash and cash equivalents


$

25,742


$

24,797


$

85,801

Restricted cash





2,602



Accounts receivable trade, net of allowance for credit losses of $5,687, $4,972 and $4,401, respectively



338,865



293,595



232,824

Accounts receivable, related parties



382



157



219

Inventories



39,389



43,074



44,456

Prepaid expenses and other current assets



32,724



33,979



31,486

Total current assets



437,102



398,204



394,786

Property and equipment



1,013,230



997,229



943,515

Accumulated depreciation



(574,348)



(556,764)



(551,727)

Total property and equipment, net



438,882



440,465



391,788

Right-of-use assets, net



51,245



54,933



47,732

Other intangible assets, net



103,032



105,881



108,472

Other long-term assets, net



13,567



12,437



7,414

Total assets


$

1,043,828


$

1,011,920


$

950,192

Liabilities and Equity










Current liabilities










Accounts payable


$

53,986


$

57,311


$

36,049

Accrued accounts payable



71,270



49,935



52,051

Accounts payable and accrued expenses, related parties



2,793



2,375



1,939

Accrued salaries and benefits



23,485



16,517



22,233

Accrued insurance



15,335



18,664



13,408

Sales tax payable



2,408



2,609



2,706

Accrued expenses and other current liabilities



19,121



20,100



19,544

Current operating lease liabilities



17,573



18,101



13,997

Current portion of finance lease obligations



19



57



113

Total current liabilities



205,990



185,669



162,040

Long-term operating lease liabilities



51,597



55,464



53,198

Other long-term liabilities



45,096



47,395



39,780

Total liabilities



302,683



288,528



255,018

Commitments and contingencies










Class A common stock, $0.01 par value; 350,000,000 shares authorized and 98,160,573
shares issued and outstanding as of June 30, 2022; 350,000,000 shares authorized and
98,111,119 shares issued and outstanding as of March 31, 2022; 350,000,000 shares
authorized and 94,172,920 shares issued and outstanding as of December 31, 2021



982



981



942

Class A-2 common stock, $0.01 par value; 40,000,000 shares authorized; no shares
issued or outstanding as of June 30, 2022, March 31, 2022 and December 31, 2021







Class B common stock, $0.01 par value; 150,000,000 shares authorized and 16,221,101
shares issued and outstanding as of June 30, 2022, March 31, 2022 and December 31, 2021



162



162



162

Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued and
outstanding as of June 30, 2022, March 31, 2022 and December 31, 2021







Additional paid-in capital



974,066



971,282



950,464

Accumulated deficit



(340,167)



(352,670)



(359,472)

Total stockholders' equity



635,043



619,755



592,096

Noncontrolling interests



106,102



103,637



103,078

Total equity



741,145



723,392



695,174

Total liabilities and equity


$

1,043,828


$

1,011,920


$

950,192

 

SELECT ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)
















Six months ended


Three months ended



June 30, 2022


June 30, 2021


June 30, 2022


March 31, 2022

Cash flows from operating activities













Net income (loss)


$

22,566


$

(47,036)


$

14,581


$

7,985

Adjustments to reconcile net income (loss) to net cash used in operating activities













Depreciation and amortization



56,846



43,941



29,779



27,067

(Gain) loss on disposal of property and equipment and divestitures



(2,384)



2,236



(731)



(1,653)

Equity in losses of unconsolidated entities



358





229



129

Bad debt expense (recovery)



1,263



(381)



692



571

Amortization of debt issuance costs



417



344



123



294

Inventory write-downs



189



82



189



Equity-based compensation



7,219



3,946



3,944



3,275

Bargain purchase gain



(17,041)





(5,607)



(11,434)

Unrealized loss on short-term investment



40



1,169





40

Other operating items, net



(478)



(139)



(577)



99

Changes in operating assets and liabilities












Accounts receivable



(89,653)



(19,054)



(43,031)



(46,622)

Prepaid expenses and other assets



5,620



(11,044)



1,066



4,554

Accounts payable and accrued liabilities



7,570



14,497



10,425



(2,855)

Net cash (used in) provided by operating activities



(7,468)



(11,439)



11,082



(18,550)

Cash flows from investing activities













Purchase of property and equipment



(30,976)



(13,451)



(15,513)



(15,463)

Investment in note receivable





(1,101)





Purchase of equity method investments



(4,267)



(2,200)



(800)



(3,467)

Collection of note receivable



184







184

Distribution from cost method investment



60



120



40



20

Acquisitions, net of cash and restricted cash received



5,857





(1,084)



6,941

Proceeds received from sales of property and equipment



17,683



5,141



5,560



12,123

Other 



(429)







(429)

Net cash used in investing activities



(11,888)



(11,491)



(11,797)



(91)

Cash flows from financing activities













Borrowings from revolving line of credit



30,000





10,000



20,000

Payments on revolving line of credit



(30,000)





(10,000)



(20,000)

Payments on long-term debt



(18,780)







(18,780)

Payments of finance lease obligations



(103)



(156)



(42)



(61)

Payment of debt issuance costs



(2,144)





(113)



(2,031)

Proceeds from share issuance



25



29



13



12

Distributions to noncontrolling interests





(1,074)





Repurchase of common stock



(19,695)



(1,206)



(787)



(18,908)

Net cash used in financing activities



(40,697)



(2,407)



(929)



(39,768)

Effect of exchange rate changes on cash



(6)



20



(13)



7

Net decrease in cash, cash equivalents and restricted cash



(60,059)



(25,317)



(1,657)



(58,402)

Cash, cash equivalents and restricted cash, beginning of period



85,801



169,039



27,399



85,801

Cash, cash equivalents and restricted cash, end of period


$

25,742


$

143,722


$

25,742


$

27,399

 

Comparison of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, gross profit before depreciation and amortization (D&A) and gross margin before D&A are not financial measures presented in accordance with GAAP. We define EBITDA as net income (loss), plus interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA plus/(minus) loss/(income) from discontinued operations, plus any impairment charges or asset write-offs pursuant to accounting principles generally accepted in the U.S. ("GAAP"), plus non-cash losses on the sale of assets or subsidiaries, non-recurring compensation expense, non-cash compensation expense, and non-recurring or unusual expenses or charges, including severance expenses, transaction costs, or facilities-related exit and disposal-related expenditures, plus/(minus) foreign currency losses/(gains) and plus/(minus) losses/(gains) on unconsolidated entities less bargain purchase gains from business combinations. We define gross profit before D&A as revenue less cost of revenue, excluding cost of sales D&A expense. We define gross margin before D&A as gross profit before D&A divided by revenue. EBITDA, Adjusted EBITDA, gross profit before D&A and gross margin before D&A are supplemental non-GAAP financial measures that we believe provide useful information to external users of our financial statements, such as industry analysts, investors, lenders and rating agencies because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and non-recurring items outside the control of our management team. We present EBITDA, Adjusted EBITDA, gross profit before D&A and gross margin before D&A because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP.

Net income (loss) is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. Gross profit (loss) is the GAAP measure most directly comparable to gross profit before D&A. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider EBITDA, Adjusted EBITDA or gross profit before D&A in isolation or as substitutes for an analysis of our results as reported under GAAP. Because EBITDA, Adjusted EBITDA and gross profit before D&A may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net income (loss), which is the most directly comparable GAAP measure for the periods presented:
























 


Three months ended, 



Six months ended June 30, 

(unaudited) (in thousands)


June 30, 2022



March 31, 2022


June 30, 2021



2022


2021




Net income (loss)


$

14,581



$

7,985


$

(19,615)



$

22,566


$

(47,036)

Interest expense, net



494




720



400




1,214



835

Income tax expense (benefit)



182




214



84




396



(179)

Depreciation and amortization



29,779




27,067



21,642




56,846



43,941

EBITDA



45,036




35,986



2,511




81,022



(2,439)

Non-cash compensation expenses



3,944




3,275



2,524




7,219



3,946

Nonrecurring severance expenses













3,225

Non-cash loss on sale of assets or subsidiaries



1,013




520



2,150




1,533



2,847

Nonrecurring transaction costs



2,879




3,617



149




6,496



561

Lease abandonment costs



162




91



222




253



326

Bargain purchase gain



(5,607)




(11,434)






(17,041)



Equity in losses of unconsolidated entities



229




129






358



Foreign currency loss (gain), net



6




(3)



(4)




3



(7)

Adjusted EBITDA


$

47,662



$

32,181


$

7,552



$

79,843


$

8,459
























 

The following table presents a reconciliation of gross profit before D&A to total gross profit (loss), which is the most directly comparable GAAP measure, and a calculation of gross margin before D&A for the periods presented:













Three months ended,

(unaudited) (in thousands)


June 30, 2022


March 31, 2022


June 30, 2021

Gross profit (loss) by segment










Water services


$

22,567


$

10,998


$

(6,432)

Water infrastructure



3,907



5,745



643

Oilfield chemicals



9,188



7,939



4,152

Other



(1)





As reported gross profit (loss)



35,661



24,682



(1,637)











Plus depreciation and amortization










Water services



15,369



15,562



12,338

Water infrastructure



11,438



8,431



6,446

Oilfield chemicals



2,447



2,507



2,234

Other







Total depreciation and amortization



29,254



26,500



21,018











Gross profit before D&A


$

64,915


$

51,182


$

19,381











Gross profit before D&A by segment










Water services



37,936



26,560



5,906

Water infrastructure



15,345



14,176



7,089

Oilfield chemicals



11,635



10,446



6,386

Other



(1)





Total gross profit before D&A


$

64,915


$

51,182


$

19,381











Gross margin before D&A by segment










Water services



19.4 %



16.2 %



7.7 %

Water infrastructure



25.5 %



24.2 %



21.3 %

Oilfield chemicals



14.6 %



14.4 %



12.5 %

Other



n/a



n/a



n/a

Total gross margin before D&A



19.3 %



17.4 %



12.0 %

 

Contacts:

Select Energy Services 


Chris George – Senior Vice President, Corporate


Development, Investor Relations & Sustainability


(713) 296-1073


IR@selectenergyservices.com




Dennard Lascar Investor Relations


Ken Dennard


(713) 529-6600


WTTR@dennardlascar.com

 

Cision View original content:https://www.prnewswire.com/news-releases/select-energy-services-reports-second-quarter-2022-financial-results-and-provides-operational-updates-301598282.html

SOURCE Select Energy Services, Inc.

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