ProFrac Holding Corp. Reports 2022 Third Quarter Financial and Operational Results

WILLOW PARK, Texas, Nov. 10, 2022 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac", "ACDC," or the "Company") today announced financial and operational results for its third quarter ended September 30, 2022.

Third Quarter 2022 Results and Recent Highlights

  • Total revenue grew approximately 18% sequentially to $696.7 million over 2022 second quarter revenue,  
  • Net income rose approximately 105% sequentially to $143.4 million
  • Adjusted EBITDA(1) excluding Flotek increased approximately 23% sequentially to $267.2 million
  • Annualized Adjusted EBITDA per fleet(2) excluding Flotek was $34.5 million on 31 average active fleets during the quarter
  • Third quarter results include the consolidation of Flotek results which contributed $46.9 million in revenue and ($11.1) million in Adjusted EBITDA
  • Subsequent to the third quarter, the Company closed on its acquisition of U.S. Well Services ("USWS") on November 1, 2022

Matt Wilks, ProFrac's Executive Chairman, stated, "We are proud to report that we grew sequential revenue by 18% and drove sequential Adjusted EBITDA up 23% in the third quarter.  Our annualized Adjusted EBITDA per fleet continued to grow, supporting the ongoing investment in our equipment and developing next generation equipment.  These third quarter results demonstrate our Company's commitment and hard work that have produced strong operational efficiencies and financial growth as we continue to scale the business.  We are bullish on the future of our industry and even more so, on ProFrac, as we continue to execute our Acquire-Retire-Replace(TM) and vertical integration strategies."    

Ladd Wilks, Chief Executive Officer, added, "I am excited to welcome the U.S. Well Services team onboard as ProFrac continues to lead our industry in reducing emissions and reducing our customers' carbon footprints in support of their ESG initiatives.  We believe our employees and assets are the best in the industry, and we are laser-focused on three critical factors that are driving our industry leading results: pricing, utilization, and our ability to control the supply chain.  Constructive market dynamics are supporting pricing and utilization.  In addition, our unique ability to manage the complicated supply chain as a single provider represents the greatest opportunity for us to enhance profitability through more efficiently providing sand, chemicals, storage and logistics for our customers. During the third quarter, we made great progress expanding the number of fleets that are bundling materials."

Third Quarter 2022 Financial Results

For the third quarter of 2022, consolidated revenues totaled $696.7 million, or approximately $90 million per fleet on an annualized basis.  The increase was driven by higher average pricing, higher material sales, and higher activity levels achieved with our fleets.

Selling, general, and administrative costs were $70.3 million, including $12.9 million of stock-based compensation, $9.7 million related to Flotek, and $5.8 million in transaction related expenses.

Net income for the third quarter totaled $143.4 million, or $1.09 per Class A share. Excluding the operating results attributable to Flotek, Net income totaled $155.9 million.

Adjusted EBITDA totaled $256.1 million in the third quarter, or $33.0 million per fleet on an annualized basis.  Excluding the operating results attributable to Flotek, Adjusted EBITDA totaled $267.2 million, or $34.5 million per fleet on an annualized basis.

Operating cash flow was $172.2 million, which included approximately $57.0 million in working capital build during the quarter from the increased activity and profitability levels.

The Company's average active fleet count for the second quarter was 31 fleets. 

Outlook

The Company fully deployed its first electric fleet during the fourth quarter and added 7 active fleets from the USWS acquisition.  The Company expects to finish the year with approximately 39 active fleets, with additional fleets under construction expected to be activated in early 2023.

Adjusted EBITDA per fleet is likely to fluctuate while we work to improve profitability on the newly acquired fleets, however the Company expects improvement in revenue for the fourth quarter as compared to the third quarter, driven by the USWS acquisition.

Business Segment Information

The Stimulation Services segment generated revenues in the third quarter of 2022 of $668.6 million, which resulted in $249.6 million of Adjusted EBITDA.

The Manufacturing segment generated revenues of $48.7 million in the third quarter of 2022, which resulted in $8.4 million of Adjusted EBITDA.  Approximately 95% of the Manufacturing segment's revenue was intercompany.

The Proppant Production segment generated revenues of $24.6 million in the third quarter of 2022, which resulted in $9.2 million of Adjusted EBITDA.  Approximately  56% of the Proppant Production segment's revenue was intercompany.

Our other business activities generated revenues of $46.9 million in the third quarter of 2022, which resulted in $(11.1) million of Adjusted EBITDA. The other business activities solely relate to the results of Flotek Industries, Inc. ("Flotek").

Capital Expenditures and Capital Allocation

Capital expenditures were $123.4 million for the third quarter excluding acquisition related expenditures.  Approximately 75% of the third quarter capital expenditures related to growth initiatives. 

The Company expects full year capex to range between $330 million to $350 million, of which approximately 30% is considered maintenance.  The increase to our capital budget primarily represents an acceleration of a number of growth-related initiatives to improve our pumping hours and our profit generating potential. We continued accelerating our engine upgrade program as the year progressed converting more Tier 2 engines to Tier 4 DGB engines and expect the full year cost for this initiative to be approximately $50 million. We expect the construction of our three electric fleets to cost approximately $75 million and the construction of our Lamesa sand plant to cost approximately $45 million.  We are also investing approximately $30 million in reducing the number of fleets waiting for maintenance and establishing a robust swing program to allow for equipment to be returned to service quicker and ensure our equipment continues to pump more hours per month.

Balance Sheet and Liquidity

Total gross debt outstanding as of September 30, 2022 was $568.0 million, $18.6 million of which was attributable to Flotek. Gross debt outstanding excluding amounts attributable to Flotek was $549.4 million, compared to $477.5 million as of June 30, 2022.

Total cash and cash equivalents as of September 30, 2022, was $64.7 million, $8.5 million of which was attributable to Flotek. Cash and cash equivalents excluding amounts attributable to Flotek was $56.2 million, compared to $40.6 million as of June 30, 2022.

As of September 30, 2022, and excluding amounts attributable to Flotek, the Company had $245.7 million of liquidity, including $56.2 million in cash and cash equivalents and net availability of $189.5 million under its asset-based credit facility.

In connection with the USWS acquisition, we issued 12.9 million shares of Class A common stock and used approximately $210 million of cash (net of cash acquired) for the retirement of $170 million in USWS debt and other transaction related fees. This cash was primarily funded through our previously undrawn ABL facility, which had an outstanding balance of $163 million on October 31, 2022.

Footnotes

(1) Adjusted EBITDA is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure").  Please see "Non-GAAP Financial Measures" at the end of this news release.


(2) Adjusted EBITDA per fleet is a Non-GAAP Financial Measure.  Please see "Non-GAAP Financial Measures" at the end of this news release.

Conference Call

ProFrac has scheduled a conference call on Friday, November 11, 2022 at 11:00 a.m. Eastern time / 10:00 a.m. Central time.  Please dial 412-902-0030 and ask for the ProFrac Holding Corp. 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 https://ir.pfholdingscorp.com/news-events/ir-calendar.  A telephonic replay of the conference call will be available through November 18, 2022 and may be accessed by calling 201-612-7415 using passcode 13733023#.  A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days. 

About ProFrac Holding Corp.

ProFrac Holding Corp. is a growth-oriented, vertically integrated and innovation-driven energy services company providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources. Founded in 2016, The Company was built to be the go-to service provider for E&P companies' most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce "greenhouse gas" emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. For more information, please visit the Company's website, https://www.pfholdingscorp.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. In some cases, the reader can identify forward-looking statements by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Forward-looking statements relate to future events or the Company's future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company's strategies and plans for growth; the Company's positioning, resources, capabilities, and expectations for future performance; market and industry expectations; the anticipated benefits of the Company's July 2022 acquisition of SPS Monahans and November 2022 acquisition of U.S. Well Services, Inc.; the Company's estimates with respect to the profitability and utilization of its electric, conventional and dual fleets; the Company's currently expected guidance regarding its fourth quarter 2022 results of operations; the Company's currently expected guidance regarding its full year 2022 capital expenditures and capital allocation; statements regarding the availability of funds under the Company's credit facilities; the Company's anticipated timing for operationalizing its new electric fleets and its West Munger sand plant; the amount of capital available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company's outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability to achieve the anticipated benefits of the acquisitions of U.S. Well Services, Inc. and SPS Monahans, including risks relating to integrating acquired companies and personnel; the failure to operationalize the Company's new electric fleets and West Munger sand plant in a timely manner or at all; the Company's ability to deploy capital in a manner that furthers the Company's growth strategy, as well as the Company's general ability to execute its business plans; industry conditions, including fluctuations in supply, demand and prices for the Company's products and services; global and regional economic and financial conditions; the effectiveness of the Company's risk management strategies; the transition to becoming a public company; and other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov.

Forward-looking statements are also subject to the risks and other issues described below under "Non-GAAP Financial Measures," which could cause actual results to differ materially from current expectations included in the Company's forward-looking statements included in this press release. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward looking statements will be achieved, including without limitation any expectations about the Company's operational and financial performance or achievements through and including 2022. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA per fleet are non-GAAP financial measures and should not be considered as substitutes for net income (loss) or any other performance measure derived in accordance with GAAP or as an alternative to net cash provided by operating activities as a measure of our profitability or liquidity. Adjusted EBITDA and Adjusted EBITDA per fleet are supplemental measures utilized by our management and other users of our financial statements such as investors, commercial banks, research analysts and others, to assess our financial performance because they allow us 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 items outside the control of our management team (such as income tax rates).

We view Adjusted EBITDA and Adjusted EBITDA per fleet as important indicators of performance. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income tax provision, (iii) depreciation, depletion and amortization, (iv) loss on disposal of assets and (v) other unusual or non-recurring charges, such as costs and stock compensation expense related to our initial public offering, non-recurring supply commitment charges, certain bad debt expense and gain on extinguishment of debt. We define Adjusted EBITDA per fleet for a particular period as Adjusted EBITDA calculated as a daily average of active fleets during period.

We believe that our presentation of Adjusted EBITDA and Adjusted EBITDA per fleet will provide useful information to investors in assessing our financial condition and results of operations. In particular, we believe Adjusted EBITDA per fleet allows investors to compare the performance of our fleets across comparable periods and against the fleets of our competitors who may have different capital structures, which may make a fleet-for-fleet comparison more difficult. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, and net income (loss) per fleet is the GAAP measure most directly comparable to Adjusted EBITDA per fleet. Adjusted EBITDA should not be considered as an alternative to net income (loss), and Adjusted EBITDA per fleet should not be considered as an alternative to net income (loss) per fleet. Adjusted EBITDA and Adjusted EBITDA per fleet have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. Because Adjusted EBITDA and Adjusted EBITDA per fleet may be defined differently by other companies in our industry, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. The following tables present a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and Adjusted EBITDA per fleet to the most directly comparable GAAP financial measure for the periods indicated.

-Tables to Follow-

 

ProFrac Holding Corp. (NasdaqGS: ACDC)


















Consolidated Statements of Operations








































Three Months Ended


Nine Months Ended




Sep. 30


Jun. 30


Sep. 30


Jun. 30


Sep. 30


Sep. 30



(In thousands)

2022


2022


2021


2021


2022


2021























Revenues

$

696,730


$

589,844


$

195,931


$

174,819


$

1,631,554


$

520,336























Operating costs and expenses:




















Costs of revenues, exclusive of depreciation, depletion  and amortization


388,068



340,600



144,163



126,708



961,267



389,177



Depreciation, depletion and amortization


68,758



64,064



35,241



34,904



177,038



105,606



Loss on disposal of assets, net


667



2,143



3,397



1,868



2,656



7,472



Selling, general and administrative


70,287



87,548



20,047



14,094



191,962



47,919



Total operating costs and expenses


527,780



494,355



202,848



177,574



1,332,923



550,174























Operating income (loss)


168,950



95,489



(6,917)



(2,755)



298,631



(29,838)























Other (expense) income: 




















Interest expense, net


(16,261)



(13,451)



(6,896)



(6,187)



(38,984)



(19,118)



Loss on extinguishment of debt


(242)



(8,822)



-



-



(17,337)



-



Other expense (income), net


(928)



989



(92)



53



8,292



148



Total other expense


(17,431)



(21,284)



(6,988)



(6,134)



(48,029)



(18,970)























Income (loss) before income tax provision


151,519



74,205



(13,905)



(8,889)



250,602



(48,808)



Income tax (provision) benefit


(8,157)



(4,112)



(170)



283



(13,021)



138























Net income (loss)

$

143,362


$

70,093


$

(14,075)


$

(8,606)


$

237,581


$

(48,670)























Less: net (income) loss attributable to ProFrac Predecessor


-



(56,157)



14,033



8,478



(79,867)



48,509



Less: net loss attributable to noncontrolling interests


11,751



8,704



42



128



20,039



161



Less: net income attributable to redeemable noncontrolling interests


(110,183)



(16,082)



-



-



(126,265)



-























Net income attributable to ProFrac Holding Corp.

$

44,930


$

6,558


$

-


$

-


$

51,488


$

-


 

ProFrac Holding Corp. (NasdaqGS: ACDC)







Consolidated Balance Sheet


















Sep. 30


Dec. 31


(In thousands)


2022


2021










Assets








Current assets:








Cash and cash equivalents


$

64,678


$

5,376


Accounts receivable, net



501,337



161,632


Accounts receivable - related party



4,510



4,515


Prepaid expenses, and other current assets



25,065



6,213


Assets held for sale



1,805



-


Inventories



238,794



73,942


Total current assets



836,189



251,678










Property, plant, and equipment



1,454,010



827,865


Accumulated depreciation and depletion



(632,801)



(464,178)


Property, plant, and equipment, net



821,209



363,687


Operating lease right-of-use assets



78,569



-


Deferred tax assets



2,033



-


Investments



56,753



4,244


Intangible assets, net



34,930



27,816


Goodwill



97,573



-


Other assets



52,028



17,145


Total assets



1,979,284



664,570










Liabilities, redeemable noncontrolling interest, and stockholders' and members' equity (deficit)








Current liabilities:








Accounts payable



209,537



121,070


Accounts payable - related party



34,911



21,275


Current portion of operating lease liabilities



9,532



-


Accrued expenses



194,321



38,149


Other current liabilities



36,446



34,400


Current portion of long-term debt



60,541



31,793


Total current liabilities



545,288



246,687










Long-term debt



484,228



235,128


Long-term debt - related party



-



34,645


Operating lease liabilities



73,180



-


Other liabilities



17,320



-


Total liabilities



1,120,016



516,460










Redeemable noncontrolling interest



1,644,426



-










Stockholders' and members' equity



-



147,015


Preferred stock



-



-


Class A common stock



412



-


Class B common stock



1,011



-


Additional paid-in capital



-



-


Accumulated deficit



(868,409)



-


Accumulated other comprehensive (loss) income



9



56


Total stockholders' and members' (deficit) equity attributable to ProFrac Holding Corp.



(866,977)



147,071


Noncontrolling interests



81,819



1,039


Total stockholders' and members' (deficit) equity 



(785,158)



148,110


Total liabilities, redeemable noncontrolling interest, and stockholders' and members' (deficit) equity 

$

1,979,284


$

664,570

 

ProFrac Holding Corp. (NasdaqGS: ACDC)












Consolidated Statements of Cash Flow



























Three Months Ended


Nine Months Ended



Sep. 30


Jun. 30


Sep. 30


Sep. 30


(In thousands)

2022


2022


2022


2021















Cash flows from operating activities:













Net income (loss)

$

143,362


$

70,093


$

237,581


$

(48,670)















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













Depreciation, depletion and amortization


68,758



64,064



177,038



105,606


Stock-based compensation


12,926



40,304



53,230



-


Loss on disposal of assets, net


667



2,143



2,656



7,472


Non-cash loss on extinguishment of debt


242



5,946



10,472



-


Amortization of debt issuance costs


1,954



1,358



4,683



1,847


Bad debt expense, net of recoveries


-



-



5



2,562


Deferred tax expense


1,333



1,024



2,357



-


Unrealized gain on investments, net


-



(426)



(8,526)



-


Changes in operating assets and liabilities:













Accounts receivable 


(46,096)



(127,515)



(220,467)



(31,396)


Inventories


(43,269)



(41,024)



(107,150)



(14,525)


Prepaid expenses and other assets


(11,443)



1,545



(18,551)



(1,223)


Accounts payable


19,082



(42,574)



6,332



4,823


Accrued expenses


28,604



60,007



111,233



11,511


Deferred revenues and other liabilities


(3,921)



4,545



5,770



(317)


Net cash provided by operating activities


172,199



39,490



256,663



37,690















Cash flows from investing activities:













Investment in property, plant & equipment


(123,408)



(74,577)



(239,477)



(70,585)


Proceeds from sale of assets


586



479



46,687



17,487


Acquisitions, net of cash acquired


(97,660)



21,723



(354,927)



(2,430)


Investment in preferred shares of BPC


-



-



(47,202)



-


Initial investment in Flotek


-



-



(10,000)



-


Other Investments


(20,946)



-



(24,839)



-


Net cash used in investing activities


(241,428)



(52,375)



(629,758)



(55,528)















Cash flows from financing activities:













Proceeds from issuance of long-term debt


231,198



27,214



818,758



160,230


Repayments of long-term debt


(17,955)



(270,005)



(515,780)



(138,887)


Borrowings from revolving credit agreements


56,450



99,313



253,683



29,500


Repayments to revolving credit agreements


(199,800)



(26,669)



(322,683)



(18,500)


Payment of debt issuance costs


(9,676)



(671)



(33,260)



(1,090)


Member contribution


-



-



5,000



-


Proceeds from issuance of common stock


-



329,118



329,118



-


Payment of THRC related equity


-



(72,931)



(72,931)



-


Payment of common stock issuance costs


-



(27,444)



(27,444)



-


Net cash provided by financing activities


60,217



57,925



434,461



31,253















Net increase in cash, cash equivalents, and restricted cash

$

(9,012)


$

45,040


$

61,366


$

13,415


Cash, cash equivalents, and restricted cash beginning of period


75,754



30,714



5,376



2,952


Cash, cash equivalents, and restricted cash end of period

$

66,742


$

75,754


$

66,742


$

16,367

 

ProFrac Holding Corp. (NasdaqGS: ACDC)



















Reconciliation of Net Income (Loss) to Adjusted Net Income









































Three Months Ended


Nine Months Ended





Sep. 30


Jun. 30


Sep. 30


Jun. 30


Sep. 30


Sep. 30



(In thousands)


2022


2022


2021


2021


2022


2021
























Net income (loss)


$

143,362


$

70,093


$

(14,075)


$

(8,606)


$

237,581


$

(48,670)
























Loss on disposal of assets, net



667



2,143



3,397



1,868



2,656



7,472



Loss on extinguishment of debt



242



8,822



-



-



17,337



-



Litigation



-



4,000



-



-



4,000



-



Stock-based compensation related to deemed contributions



10,207



38,849



-



-



49,056



-



Bad debt expense, net of recoveries



-



-



2,562



-



5



2,562



(Gain) loss on foreign currency transactions



(80)



(58)



116



-



(126)



116



Reorganization costs



-



-



211



-



55



211



Acquisition related expenses



5,806



4,063



-



-



22,888



-



Unrealized gain on investments, net



-



(426)



-



-



(8,526)



-



Adjusted Net Income (loss)


$

160,204


$

127,486


$

(7,789)


$

(6,738)


$

324,926


$

(38,309)


 

ProFrac Holding Corp. (NasdaqGS: ACDC)



















Reconciliation of Net Income (Loss) to Adjusted Net Income excluding Flotek











































Three Months Ended


Nine Months Ended





Sep. 30


Jun. 30


Sep. 30


Jun. 30


Sep. 30


Sep. 30



(In thousands)


2022


2022


2021


2021


2022


2021
























Net income (loss)


$

143,362


$

70,093


$

(14,075)


$

(8,606)


$

237,581


$

(48,670)
























Loss on disposal of assets, net



667



2,143



3,397



1,868



2,656



7,472



Loss on extinguishment of debt



242



8,822



-



-



17,337



-



Litigation



-



4,000



-



-



4,000



-



Stock-based compensation related to deemed contributions



10,207



38,849



-



-



49,056



-



Bad debt expense, net of recoveries



-



-



2,562



-



5



2,562



(Gain) loss on foreign currency transactions



(80)



(58)



116



-



(126)



116



Reorganization costs



-



-



211



-



55



211



Acquisition related expenses



5,806



4,063



-



-



22,888



-



Unrealized gain on investments, net



-



(426)



-



-



(8,526)



-



Adjusted Net Income (loss)


$

160,204


$

127,486


$

(7,789)


$

(6,738)


$

324,926


$

(38,309)



Less: net (income) loss from other business activities



12,497



8,604



-



-



21,101



-



Adjusted Net Income (loss) excluding other business activities



172,701



136,090



(7,789)



(6,738)



346,027



(38,309)


 

ProFrac Holding Corp. (NasdaqGS: ACDC)



















Reconciliation of Net Income (Loss) to Adjusted EBITDA










































Three Months Ended


Nine Months Ended




Sep. 30


Jun. 30


Sep. 30


Jun. 30


Sep. 30


Sep. 30


(In thousands)


2022


2022


2021


2021


2022


2021






















Net income (loss)


$

143,362


$

70,093


$

(14,075)


$

(8,606)


$

237,581


$

(48,670)






















Interest expense, net



16,261



13,451



6,896



6,187



38,984



19,118


Depreciation, depletion and amortization



68,758



64,064



35,241



34,904



177,038



105,606


Income tax provision (benefit)



8,157



4,112



170



(283)



13,021



(138)


Loss on disposal of assets, net



667



2,143



3,397



1,868



2,656



7,472


Loss on extinguishment of debt



242



8,822



-



-



17,337



-


Litigation



-



4,000



-



-



4,000



-


Stock-based compensation



2,719



1,455



-



-



4,174



-


Stock-based compensation related to deemed contributions



10,207



38,849



-



-



49,056



-


Bad debt expense, net of recoveries



-



-



2,562



-



5



2,562


(Gain) loss on foreign currency transactions



(80)



(58)



116



-



(126)



116


Reorganization costs



-



-



211



-



55



211


Acquisition related expenses



5,806



4,063



-



-



22,888



-


Unrealized gain on investments, net



-



(426)



-



-



(8,526)



-


Adjusted EBITDA


$

256,099


$

210,568


$

34,518


$

34,070


$

558,143


$

86,277

 

ProFrac Holding Corp. (NasdaqGS: ACDC)



















Reconciliation of Net Income (Loss) to Pro Forma Adjusted EBITDA excluding Flotek










































Three Months Ended


Nine Months Ended




Sep. 30


Jun. 30


Sep. 30


Jun. 30


Sep. 30


Sep. 30


(In thousands except average active fleets and annualization factor)


2022


2022


2021


2021


2022


2021






















Net income (loss)


$

143,362


$

70,093


$

(14,075)


$

(8,606)


$

237,581


$

(48,670)






















Interest expense, net



16,261



13,451



6,896



6,187



38,984



19,118


Depreciation, depletion and amortization



68,758



64,064



35,241



34,904



177,038



105,606


Income tax provision



8,157



4,112



170



(283)



13,021



(138)


Loss on disposal of assets, net



667



2,143



3,397



1,868



2,656



7,472


Loss on extinguishment of debt



242



8,822



-



-



17,337



-


Litigation



-



4,000



-



-



4,000



-


Stock-based compensation



2,719



1,455



-



-



4,174



-


Stock-based compensation related to deemed contributions



10,207



38,849



-



-



49,056



-


Bad debt expense, net of recoveries



-



-



2,562



-



5



2,562


(Gain) loss on foreign currency transactions



(80)



(58)



116



-



(126)



116


Reorganization costs



-



-



211



-



55



211


Acquisition related expenses



5,806



4,063



-



-



22,888



-


Unrealized gain on investments, net



-



(426)



-



-



(8,526)



-


Total adjusted EBITDA for reportable segments


$

256,099


$

210,568


$

34,518


$

34,070


$

558,143


$

86,277


Less: other business activities operating results



11,072



7,454



-



-



18,526



-


Adjusted EBITDA excluding other business activities



267,171



218,022



34,518



34,070



576,669



86,277


Average active fleets



31.0



31.0



14.7



20.0



27.9



14.9


Adjusted EBITDA excluding other business activities per average active fleet



8,618



7,033



2,348



1,704



20,669



5,790


Annualization factor



4.0



4.0



4.0



4.0



1.3



1.3


Annualized adjusted EBITDA excluding other business activities per average active fleet


$

34,474


$

28,132


$

9,393


$

6,814


$

27,559


$

7,721

 

ProFrac Holding Corp. (NasdaqGS: ACDC)





















Segment Information

















































Three Months Ended


Nine Months Ended






Sep. 30


Jun. 30



Sep. 30


Jun. 30



Sep. 30


Sep. 30




(In thousands)


2022


2022



2021


2021



2022


2021




























Revenues
























Stimulation services


$

668,578


$

576,556



$

190,723


$

168,506



$

1,581,289


$

502,932




Manufacturing



48,742



34,854




19,861



16,223




115,602



50,741




Proppant production



24,642



17,531




6,399



7,781




54,581



19,769




Other



46,872



15,359




-



-




62,231



-




Total segments



788,834



644,300




216,983



192,510




1,813,703



573,442




Eliminations



(92,104)



(54,456)




(21,052)



(17,691)




(182,149)



(53,106)




Total revenues


$

696,730


$

589,844



$

195,931


$

174,819



$

1,631,554


$

520,336




























Adjusted EBITDA
























Stimulation services


$

249,557


$

196,088



$

31,599


$

30,475



$

519,214


$

75,027




Manufacturing



8,416



9,360




502



349




27,798



3,181




Proppant production



9,198



12,574




2,417



3,246




29,657



8,069




Other



(11,072)



(7,454)




-



-




(18,526)



-




Adjusted EBITDA for reportable segments


$

256,099


$

210,568



$

34,518


$

34,070



$

558,143


$

86,277



 

ProFrac Holding Corp. (NasdaqGS: ACDC)




Net Debt


















Sep. 30


Jun. 30


(In thousands)


2022


2022










Current portion of long-term debt


$

60,541


$

51,329


Long-term debt



484,228



427,961


Long-term debt - related party



-



-


Total debt



544,769



479,290










Plus: Unamortized debt issuance costs



23,235



15,755


Total gross debt



568,004



495,045










Less: Cash and cash equivalents



(64,678)



(73,653)


Net debt


$

503,326


$

421,392

 

ProFrac Holding Corp. (NasdaqGS: ACDC)




Net Debt excluding Other Business Activities

















Sep. 30


Jun. 30


(In thousands)


2022


2022










Current portion of long-term debt


$

44,917


$

36,938


Long-term debt



481,265



424,825


Long-term debt - related party



-



-


Total debt



526,182



461,763










Plus: Unamortized debt issuance costs



23,235



15,755


Total gross debt



549,417



477,518










Less: Cash and cash equivalents



(56,170)



(40,569)


Net debt


$

493,247


$

436,949

 

Contacts:

ProFrac Holding Corp.


Lance Turner – Chief Financial Officer


investors@profrac.com  




Dennard Lascar Investor Relations


Ken Dennard / Rick Black


ACDC@dennardlascar.com

 

Cision View original content:https://www.prnewswire.com/news-releases/profrac-holding-corp-reports-2022-third-quarter-financial-and-operational-results-301675057.html

SOURCE ProFrac Holding Corp.

« Back to View All News