C&J Energy Services, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported revenue of $553,000,000 against $314,194,000 a year ago. Operating income was $20,342,000 against operating loss of $36,408,000 a year ago. Income before income taxes was $20,534,000 against loss before income taxes of $35,537,000 a year ago. Net income was $20,594,000 or $0.31 diluted per share against net loss of $32,301,000 or $0.58 diluted per share a year ago. Net cash provided by operating activities of $35,656,000 against net cash used in operating activities of $77,902,000 a year ago. Purchases of and deposits on property, plant and equipment were $63,028,000 against $11,585,000 a year ago. Adjusted net income was $27,461,000 or $0.41 diluted per share. Adjusted EBITDA was $73,686,000 against $4,584,000 a year ago. Net income in the first quarter of 2018 was below net income of $57.0 million in the fourth quarter of 2017, primarily due to a non-routine tax benefit related to the O-Tex acquisition and a one-time net gain on the sale of Canadian rig services business, both completed in the prior quarter. Capital expenditures totaled $63.0 million during the first quarter of 2018, compared to $58.7 million in the fourth quarter of 2017, and $11.6 million in the first quarter of 2017.

The company provided earnings guidance for the second quarter of 2018. Looking ahead to the second quarter, the company expects depreciation and amortization expense to increase consistent with capital expenditure program and range between $49 million and $54 million.

The company expects that it will not be a cash taxpayer in 2018 and 2019 and for a few years after that outside of nominal state and local taxes. The company has approximately $1.1 billion of NOL value from prior years, and repurchase premium associated with emergence from Chapter 11 that the company expects to utilize over the coming years to offset positive earnings and provide significant incremental free cash flow. Now to put this into perspective, using a 21% effective tax rate, the value of NOLs will generate approximately $230 million of incremental free cash flow.