- Fourth-quarter revenue of
$943.6 million decreased 4% year-over-year, flat sequentially - Fourth-quarter net income attributable to
ChampionX of$77.2 million increased 14% year-over-year, and decreased 1% sequentially - Fourth-quarter adjusted EBITDA of
$198.1 million increased 10% year-over-year, flat sequentially - Fourth-quarter cash from operating activities of
$169.0 million and free cash flow of$139.8 million - Full-year net income attributable to
ChampionX of$314.2 million increased 103% year-over-year - Full-year adjusted EBITDA of
$771.2 million increased 25% year-over-year - Full-year cash from operating activities of
$540.3 million and free cash flow of$412.5 million - Repurchased
$118 million of common stock in Q4’23 and$277 million in full-year 2023 - Returned
$343 million of cash to our shareholders in 2023, representing 63% of cash flow from operating activities and 83% of free cash flow - Board approved increase in share repurchase program authorization to
$1.5 billion - Board approved a 12% increase in regular quarterly dividend to
$0.095 per share
CEO Commentary
“2023 was a year of continued strong earnings momentum for
“During the fourth quarter of 2023, we generated revenue of
“We once again demonstrated our strong cash flow profile. Cash flow from operating activities was
“We remain committed to return at least 60% of free cash flow to shareholders through-the-cycle. Consistent with this commitment, we announced today that our Board of Directors approved an increase to our share repurchase program, which authorizes
We expect 2024 to be a positive growth year, driven by the constructive market environment, particularly for our international businesses, and expect our adjusted EBITDA and adjusted EBITDA margin to progressively improve through the year. As we look to the first quarter, we expect typical seasonal declines in our international operations, partially offset by sequential improvement in our North American businesses. On a consolidated basis, in the first quarter, we expect revenue to be between
We are excited about the positive revenue outlook driven by multi-year healthy fundamentals for our sector. This, combined with our productivity efforts, drives our confidence in delivering continued earnings growth, adjusted EBITDA margin expansion and strong cash generation. Our high adjusted margin, production-focused equipment, technology and chemicals portfolio is built to deliver attractive earnings and robust free cash flow reliably through the cycle. This, in turn, supports value creation for our shareholders through a disciplined capital allocation framework, with clear priorities for capital deployment, including high-return investment and returning cash to shareholders.
Fourth Quarter Highlights
Production Chemical Technologies
Production Chemical Technologies revenue in the fourth quarter of 2023 was
Segment operating profit was
Production & Automation Technologies
Production & Automation Technologies revenue in the fourth quarter of 2023 was
Revenue from digital products was
Segment operating profit was
Drilling Technologies
Drilling Technologies revenue in the fourth quarter of 2023 was
Segment operating profit was
Reservoir Chemical Technologies
Reservoir Chemical Technologies revenue in the fourth quarter of 2022 was
Segment operating profit was
Share Repurchase Program
Repurchases under the Share Repurchase Program may be made, from time to time, in amounts and at prices
Dividend
Other Business Highlights
Chemical Technologies
- Continued to strengthen its market-leading production chemicals position in deepwater through the award of various flow assurance chemistries to treat three new
U.S. Gulf of Mexico subsea tiebacks, each connecting back to a different host platform. - Significantly strengthened its market position with an independent Canadian producer looking for consistent technical support across its asset base. The customer’s positive experience with
ChampionX , coupled with our disciplined customer account management process, resulted in Chemical Technologies being awarded a sole supply agreement. - Awarded an additional three-year contract extension with a customer in
Australia which Chemical Technologies has served for approximately four decades. The contract extension award was as a result of detailed account management and strong customer value delivery.
Production & Automation Technologies
- Installed its Pro-Rod breakthrough product, AnXTM corrosion-resistant coiled rod, in multiple wells in
Oman operated by a large NOC, demonstrating the effectiveness and reliability of the technology in some of the world’s most extreme and corrosive environments. Pro-Rod is a leader in anti-corrosion technology, and AnXTM is a step-change in sucker rod corrosion control, allowing for meaningful improvements in mean time to failure in rod-driven wells. - Secured the adoption by a large
IOC of our UNBRIDLED ESP Systems’ HIGH RISE™ Kronos technology as their primary gas-handling pump for high gas-to-oil ESP applications in unconventional wells. Kronos is a specialized rotodynamic ESP gas handling pump that compresses gas slugs more effectively by increasing fluid pressure and priming the fluid stream. By preventing gas from breaking out of solution, the production pump can handle more gas. Kronos handles up to 75% gas volume fraction (GVF) before gas locking, providing 50% greater system gas handling capability, on average. Kronos also provides better pump efficiency at higher GVF, which reduces power consumption. - Closed the first commercial sale of the new Autonomous Chemical Injection Optimization feature within Theta Production Optimization’s XSPOC™ production optimization software, which allows producers to adjust automatically their chemical injection rates to dynamic parameters being tracked in the software, such as production volumes or temperature. This solution was instrumental in providing a Permian-based operator with intelligent dosing, rather than fixed dosage rates, ensuring that the correct amount of chemicals was delivered proportionately to the well's dynamic productivity. Initial implementation has shown promising results of improving chemical assurance while effectively managing cost efficiency.
- Secured commitment from an
IOC for a large order of 10,000-psi radial flow lubricators for use in the customer’sSouth Texas operations, for which the majority have been installed on both new well completions and gas lift conversions. Engineered for maximum operational adaptability and durability, the “drop-in” design helps operators manage production from post-completion flowback through gas lift, to plunger-assisted gas lift (PAGL), and finally to plunger lift without having to modify the wellhead or activate a workover rig. The units are fast and easy to install on new wells, which minimizes well down time and reduces on-site welding, pipe make-up requirements, and roustabout time by 50%. The lubricators also contain internal adjustment sleeves to easily increase or decrease the flow area to adapt to changing well production profiles. - Awarded a significant customer commitment with a large operator for supply and service of our high-pressure Rod-Lock BOPs in Argentina’s Vaca Muerta field. This industry-leading technology enhances safety and protects adjacent wells from frac breakthrough, and this customer commitment demonstrates our strong partnership and ability to offer innovative and reliable solutions to customers in both domestic and international unconventional resource plays.
- Won a contract expansion with an
IOC in theDelaware Basin for use of our Phantom single-point chemical injection systems on nearly 100 wells.ChampionX has an exclusive distribution agreement for the FlowCoreTM Phantom technology, which features 99% injection accuracy and a dual communications system that allows for autonomously adjusting injection rates in real time based on production data from the customer’s Scada system. This capability is especially important for the dynamic well conditions in unconventional wells. The injection system also uses a cloud-based platform where the chemical provider can monitor chemical tank levels, injection variances, and potential injection system reliability issues. - Exited 2023 with our Emissions Technologies business serving 60 operators worldwide, illustrating our extensive market presence and strong customer engagement.
Drilling Technologies
- Full-year 2023 diamond bearing sales increased by more than 40% year-over-year.
Other
- ChampionX Middle East was awarded the OPAL Award for best practices in 2023 in the “Omanisation” Category for the Large Contractor sector. The award recognizes the most innovative policies and procedures implemented towards recruiting, developing and retaining Omani workforce.
ChampionX was named a winner of theFrost & Sullivan 2023 Enlightened Growth Leadership Award for its leadership in chemical solutions, artificial lift systems, and engineering solutions. The award recognizes organizations that have embraced emerging technologies, and generated opportunities for all while demonstrating best practices for sustainable growth.
Conference Call Details
To listen to the call via a live webcast, please visit ChampionX’s website at investor.championx.com. The call will also be available by dialing 1-888-259-6580 in
A replay of the conference call will be available for 30 days on ChampionX’s website.
About Non-GAAP Measures
In addition to financial results determined in accordance with generally accepted accounting principles in
This press release contains certain forward-looking non-GAAP financial measures, including adjusted EBITDA. The Company has not provided projected net income attributable to
About
Forward-Looking Statements
This news release contains statements relating to future actions and results, which are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, ChampionX's market position and growth opportunities. Forward-looking statements include statements related to ChampionX’s expectations regarding the performance of the business, financial results, liquidity and capital resources of
Investor Contact:
byron.pope@championx.com
281-602-0094
Media Contact:
john.breed@championx.com
281-403-5751
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||
(in thousands, except per share amounts) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenue | $ | 943,555 | $ | 939,783 | $ | 985,855 | $ | 3,758,285 | $ | 3,805,948 | |||||||||
Cost of goods and services | 661,337 | 647,923 | 703,232 | 2,618,646 | 2,907,284 | ||||||||||||||
Gross profit | 282,218 | 291,860 | 282,623 | 1,139,639 | 898,664 | ||||||||||||||
Selling, general and administrative expense | 147,415 | 162,317 | 146,835 | 633,032 | 592,282 | ||||||||||||||
— | — | 39,617 | — | 39,617 | |||||||||||||||
Long-lived asset impairments and loss on disposal groups | — | — | 1,978 | 12,965 | 18,493 | ||||||||||||||
Interest expense, net | 13,808 | 13,744 | 11,622 | 54,562 | 45,204 | ||||||||||||||
Foreign currency transaction losses (gains), net | 14,651 | 7,992 | (2,687 | ) | 36,334 | 8,555 | |||||||||||||
Other income, net | (7,584 | ) | (1,994 | ) | (2,019 | ) | (21,078 | ) | (2,293 | ) | |||||||||
Income before income taxes | 113,928 | 109,801 | 87,277 | 423,824 | 196,806 | ||||||||||||||
Provision for income taxes | 35,771 | 29,009 | 21,008 | 105,105 | 40,243 | ||||||||||||||
Net income | 78,157 | 80,792 | 66,269 | 318,719 | 156,563 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | 959 | 3,081 | (1,588 | ) | 4,481 | 1,594 | |||||||||||||
Net income attributable to | $ | 77,198 | $ | 77,711 | $ | 67,857 | $ | 314,238 | $ | 154,969 | |||||||||
Earnings per share attributable to | |||||||||||||||||||
Basic | $ | 0.40 | $ | 0.40 | $ | 0.34 | $ | 1.60 | $ | 0.77 | |||||||||
Diluted | $ | 0.39 | $ | 0.39 | $ | 0.33 | $ | 1.57 | $ | 0.75 | |||||||||
Weighted-average shares outstanding: | |||||||||||||||||||
Basic | 193,191 | 195,881 | 199,232 | 196,083 | 201,740 | ||||||||||||||
Diluted | 196,649 | 199,592 | 204,389 | 199,906 | 207,259 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(in thousands) | 2023 | 2022 | |||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 288,557 | $ | 250,187 | |||
Receivables, net | 534,534 | 601,061 | |||||
Inventories, net | 521,549 | 542,543 | |||||
Prepaid expenses and other current assets | 80,777 | 104,790 | |||||
Total current assets | 1,425,417 | 1,498,581 | |||||
Property, plant and equipment, net | 773,552 | 734,810 | |||||
669,064 | 679,488 | ||||||
Intangible assets, net | 243,553 | 305,010 | |||||
Other non-current assets | 130,116 | 169,594 | |||||
Total assets | $ | 3,241,702 | $ | 3,387,483 | |||
Liabilities | |||||||
Current portion of long-term debt | $ | 6,203 | $ | 6,250 | |||
Accounts payable | 451,680 | 469,566 | |||||
Other current liabilities | 324,866 | 383,160 | |||||
Total current liabilities | 782,749 | 858,976 | |||||
Long-term debt | 594,283 | 621,702 | |||||
Other long-term liabilities | 203,639 | 229,590 | |||||
Stockholders’ equity: | |||||||
1,676,622 | 1,694,550 | ||||||
Noncontrolling interest | (15,591 | ) | (17,335 | ) | |||
Total liabilities and equity | $ | 3,241,702 | $ | 3,387,483 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
Years Ended | |||||||
(in thousands) | 2023 | 2022 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 318,719 | $ | 156,563 | |||
Depreciation and amortization | 235,936 | 241,880 | |||||
Loss on disposal groups | 12,965 | 16,515 | |||||
— | 39,617 | ||||||
Loss on debt extinguishment and modification | — | 4,043 | |||||
Gain on disposal of fixed assets | (1,046 | ) | (1,683 | ) | |||
Deferred income taxes | (22,272 | ) | (45,282 | ) | |||
Receivables | 70,021 | (23,988 | ) | ||||
Inventories | 18,753 | (52,426 | ) | ||||
Accounts payable | (53,891 | ) | (13,366 | ) | |||
Other assets | 20,395 | (1,838 | ) | ||||
Leased assets | (51,247 | ) | (25,275 | ) | |||
Other operating items, net | (8,062 | ) | 118,600 | ||||
Net cash provided by operating activities | 540,271 | 413,360 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (142,324 | ) | (102,808 | ) | |||
Proceeds from sale of fixed assets | 14,545 | 18,017 | |||||
Acquisitions, net of cash acquired | — | (3,198 | ) | ||||
Net cash used for investing activities | (127,779 | ) | (87,989 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 15,500 | 995,038 | |||||
Repayment of long-term debt | (45,176 | ) | (1,092,950 | ) | |||
Payment of debt issuance costs | (1,028 | ) | (8,008 | ) | |||
Repurchases of common stock | (277,575 | ) | (180,142 | ) | |||
Dividends paid | (64,980 | ) | (45,594 | ) | |||
Other | 94 | 6,851 | |||||
Net cash used for financing activities | (373,165 | ) | (324,805 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (957 | ) | (5,557 | ) | |||
Net increase (decrease) in cash and cash equivalents | 38,370 | (4,991 | ) | ||||
Cash and cash equivalents at beginning of period | 250,187 | 255,178 | |||||
Cash and cash equivalents at end of period | $ | 288,557 | $ | 250,187 |
BUSINESS SEGMENT DATA (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Segment revenue: | |||||||||||||||||||
Production Chemical Technologies | $ | 634,137 | $ | 604,254 | $ | 636,539 | $ | 2,404,377 | $ | 2,347,526 | |||||||||
Production & Automation Technologies | 241,294 | 256,148 | 244,181 | 1,003,146 | 954,646 | ||||||||||||||
Drilling Technologies | 46,821 | 54,869 | 53,797 | 215,721 | 229,479 | ||||||||||||||
Reservoir Chemical Technologies | 21,402 | 25,093 | 25,698 | 96,154 | 145,197 | ||||||||||||||
Corporate and other | (99 | ) | (581 | ) | 25,640 | 38,887 | 129,100 | ||||||||||||
Total revenue | $ | 943,555 | $ | 939,783 | $ | 985,855 | $ | 3,758,285 | $ | 3,805,948 | |||||||||
Income (loss) before income taxes: | |||||||||||||||||||
Segment operating profit (loss): | |||||||||||||||||||
Production Chemical Technologies | $ | 102,179 | $ | 94,560 | $ | 96,418 | $ | 350,216 | $ | 239,936 | |||||||||
Production & Automation Technologies | 22,110 | 28,299 | 18,104 | 118,409 | 89,133 | ||||||||||||||
Drilling Technologies | 8,679 | 12,255 | 9,426 | 45,481 | 54,512 | ||||||||||||||
Reservoir Chemical Technologies | 3,907 | 2,461 | (16,884 | ) | 10,541 | (90,212 | ) | ||||||||||||
Total segment operating profit | 136,875 | 137,575 | 107,064 | 524,647 | 293,369 | ||||||||||||||
Corporate and other | 9,139 | 14,030 | 8,165 | 46,261 | 51,359 | ||||||||||||||
Interest expense, net | 13,808 | 13,744 | 11,622 | 54,562 | 45,204 | ||||||||||||||
Income before income taxes | $ | 113,928 | $ | 109,801 | $ | 87,277 | $ | 423,824 | $ | 196,806 | |||||||||
Operating profit margin / income (loss) before income taxes margin: | |||||||||||||||||||
Production Chemical Technologies | 16.1 | % | 15.6 | % | 15.1 | % | 14.6 | % | 10.2 | % | |||||||||
Production & Automation Technologies | 9.2 | % | 11.0 | % | 7.4 | % | 11.8 | % | 9.3 | % | |||||||||
Drilling Technologies | 18.5 | % | 22.3 | % | 17.5 | % | 21.1 | % | 23.8 | % | |||||||||
Reservoir Chemical Technologies | 18.3 | % | 9.8 | % | (65.7 | )% | 11.0 | % | (62.1 | )% | |||||||||
ChampionX Consolidated | 12.1 | % | 11.7 | % | 8.9 | % | 11.3 | % | 5.2 | % | |||||||||
Adjusted EBITDA | |||||||||||||||||||
Production Chemical Technologies | $ | 139,107 | $ | 133,101 | $ | 121,204 | $ | 506,991 | $ | 377,489 | |||||||||
Production & Automation Technologies | 52,800 | 59,288 | 51,137 | 232,672 | 197,453 | ||||||||||||||
Drilling Technologies | 10,361 | 13,786 | 10,999 | 51,986 | 61,932 | ||||||||||||||
Reservoir Chemical Technologies | 5,501 | 4,198 | 3,460 | 18,498 | 6,000 | ||||||||||||||
Corporate and other | (9,624 | ) | (12,837 | ) | (7,390 | ) | (38,926 | ) | (25,716 | ) | |||||||||
Adjusted EBITDA | $ | 198,145 | $ | 197,536 | $ | 179,410 | $ | 771,221 | $ | 617,158 | |||||||||
Adjusted EBITDA margin | |||||||||||||||||||
Production Chemical Technologies | 21.9 | % | 22.0 | % | 19.0 | % | 21.1 | % | 16.1 | % | |||||||||
Production & Automation Technologies | 21.9 | % | 23.1 | % | 20.9 | % | 23.2 | % | 20.7 | % | |||||||||
Drilling Technologies | 22.1 | % | 25.1 | % | 20.4 | % | 24.1 | % | 27.0 | % | |||||||||
Reservoir Chemical Technologies | 25.7 | % | 16.7 | % | 13.5 | % | 19.2 | % | 4.1 | % | |||||||||
ChampionX Consolidated | 21.0 | % | 21.0 | % | 18.2 | % | 20.5 | % | 16.2 | % |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
The Company defines adjusted EBITDA as net income (loss) plus (i) depreciation and amortization, (ii) interest expense, net, (iii) foreign currency transaction losses (gains), net, (iv) provision for income taxes, and (v) other material items that management believes do not reflect our core operating performance.
Previously, the Company defined adjusted EBITDA inclusive of the impact of foreign currency transaction gains and losses. However, beginning with the fourth quarter of 2023, the Company revised the definition in order to remove the impact related to foreign currency fluctuations as we believe it provides a more consistent basis for comparing underlying operating performance on a currency neutral basis across periods. The comparative periods were also adjusted based on the revised definition. See the following tables for the reconciliation of adjusted EBITDA for the current and historical periods using the revised definition.
Three Months Ended | Years Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net income attributable to | $ | 77,198 | $ | 77,711 | $ | 67,857 | $ | 314,238 | $ | 154,969 | |||||||||
Pre-tax adjustments: | |||||||||||||||||||
Loss on disposal groups (1) | — | — | 1,978 | 12,965 | 18,493 | ||||||||||||||
160 | 95 | (2,909 | ) | 1,209 | 928 | ||||||||||||||
— | — | 39,617 | — | 39,617 | |||||||||||||||
Loss on debt extinguishment and modification | — | — | — | — | 6,070 | ||||||||||||||
Restructuring and other related charges | 2,407 | 1,228 | (16,784 | ) | 13,387 | 65,158 | |||||||||||||
Merger integration costs | — | — | 1,001 | 245 | 10,759 | ||||||||||||||
Acquisition costs and related adjustments (3) | (6,817 | ) | — | (7,112 | ) | (12,670 | ) | (17,648 | ) | ||||||||||
Intellectual property defense | 638 | 220 | 27 | 1,545 | 781 | ||||||||||||||
Merger-related indemnification responsibility | — | 722 | — | 722 | — | ||||||||||||||
660 | 1,895 | — | 3,162 | — | |||||||||||||||
Foreign currency transaction losses, net | 14,651 | 7,992 | 574 | 36,334 | 9,110 | ||||||||||||||
Tax impact of adjustments | (2,600 | ) | (2,702 | ) | 3,604 | (12,650 | ) | (20,940 | ) | ||||||||||
Adjusted net income attributable to | 86,297 | 87,161 | 87,853 | 358,487 | 267,297 | ||||||||||||||
Tax impact of adjustments | 2,600 | 2,702 | (3,604 | ) | 12,650 | 20,940 | |||||||||||||
Net income (loss) attributable to noncontrolling interest | 959 | 3,081 | (1,588 | ) | 4,481 | 1,594 | |||||||||||||
Depreciation and amortization | 58,710 | 61,839 | 64,119 | 235,936 | 241,880 | ||||||||||||||
Provision for income taxes | 35,771 | 29,009 | 21,008 | 105,105 | 40,243 | ||||||||||||||
Interest expense, net | 13,808 | 13,744 | 11,622 | 54,562 | 45,204 | ||||||||||||||
Adjusted EBITDA | $ | 198,145 | $ | 197,536 | $ | 179,410 | $ | 771,221 | $ | 617,158 |
_______________________
(1) | Amounts represent the loss recorded to properly adjust the carrying value of our Chemical Technologies operations in | |
(2) | Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in | |
(3) | Includes revenue associated with the amortization of a liability established as part of the merger transaction with Ecolab Inc. (“Ecolab”) to acquire the Chemical Technologies business, representing unfavorable terms under the Cross Supply Agreement, as well as costs incurred for the acquisition of businesses. During the fourth quarter of 2023, we recorded a fair value adjustment to contingent consideration on a prior acquisition as well as the settlement of an item pursuant to the tax matters agreement with Ecolab. |
Three Months Ended | Years Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Diluted earnings per share attributable to | $ | 0.39 | $ | 0.39 | $ | 0.33 | $ | 1.57 | $ | 0.75 | |||||||||
Per share adjustments: | |||||||||||||||||||
Loss on disposal groups | — | — | 0.01 | 0.06 | 0.09 | ||||||||||||||
— | — | (0.01 | ) | — | — | ||||||||||||||
— | — | 0.19 | — | 0.19 | |||||||||||||||
Loss on debt extinguishment and modification | — | — | — | — | 0.03 | ||||||||||||||
Restructuring and other related charges | 0.01 | 0.01 | (0.08 | ) | 0.07 | 0.31 | |||||||||||||
Merger integration costs | — | — | — | — | 0.05 | ||||||||||||||
Acquisition costs and related adjustments | (0.03 | ) | — | (0.03 | ) | (0.06 | ) | (0.09 | ) | ||||||||||
Intellectual property defense | — | — | — | 0.01 | — | ||||||||||||||
Merger-related indemnification responsibility | — | 0.01 | — | — | — | ||||||||||||||
0.01 | 0.01 | — | 0.02 | — | |||||||||||||||
Foreign currency transaction losses | 0.07 | 0.04 | — | 0.18 | 0.04 | ||||||||||||||
Tax impact of adjustments | (0.01 | ) | (0.02 | ) | 0.02 | (0.06 | ) | (0.08 | ) | ||||||||||
Adjusted diluted earnings per share attributable to | $ | 0.44 | $ | 0.44 | $ | 0.43 | $ | 1.79 | $ | 1.29 |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Production Chemical Technologies | |||||||||||||||||||
Segment operating profit | $ | 102,179 | $ | 94,560 | $ | 96,418 | $ | 350,216 | $ | 239,936 | |||||||||
Non-GAAP adjustments | 11,194 | 9,079 | 1,703 | 51,717 | 45,678 | ||||||||||||||
Depreciation and amortization | 25,734 | 29,462 | 23,083 | 105,058 | 91,875 | ||||||||||||||
Segment adjusted EBITDA | $ | 139,107 | $ | 133,101 | $ | 121,204 | $ | 506,991 | $ | 377,489 | |||||||||
Production & Automation Technologies | |||||||||||||||||||
Segment operating profit | $ | 22,110 | $ | 28,299 | $ | 18,104 | $ | 118,409 | $ | 89,133 | |||||||||
Non-GAAP adjustments | 1,231 | 2,089 | 3,978 | 5,246 | 4,728 | ||||||||||||||
Depreciation and amortization | 29,459 | 28,900 | 29,055 | 109,017 | 103,592 | ||||||||||||||
Segment adjusted EBITDA | $ | 52,800 | $ | 59,288 | $ | 51,137 | $ | 232,672 | $ | 197,453 | |||||||||
Drilling Technologies | |||||||||||||||||||
Segment operating profit | $ | 8,679 | $ | 12,255 | $ | 9,426 | $ | 45,481 | $ | 54,512 | |||||||||
Non-GAAP adjustments | 109 | (8 | ) | (6 | ) | 313 | 781 | ||||||||||||
Depreciation and amortization | 1,573 | 1,539 | 1,579 | 6,192 | 6,639 | ||||||||||||||
Segment adjusted EBITDA | $ | 10,361 | $ | 13,786 | $ | 10,999 | $ | 51,986 | $ | 61,932 | |||||||||
Reservoir Chemical Technologies | |||||||||||||||||||
Segment operating profit | $ | 3,907 | $ | 2,461 | $ | (16,884 | ) | $ | 10,541 | $ | (90,212 | ) | |||||||
Non-GAAP adjustments | 4 | 72 | 15,590 | 1,486 | 81,550 | ||||||||||||||
Depreciation and amortization | 1,590 | 1,665 | 4,754 | 6,471 | 14,662 | ||||||||||||||
Segment adjusted EBITDA | $ | 5,501 | $ | 4,198 | $ | 3,460 | $ | 18,498 | $ | 6,000 | |||||||||
Corporate and other | |||||||||||||||||||
Segment operating profit | $ | (22,947 | ) | $ | (27,774 | ) | $ | (19,787 | ) | $ | (100,823 | ) | $ | (96,563 | ) | ||||
Non-GAAP adjustments | (839 | ) | 920 | (4,873 | ) | (1,863 | ) | 531 | |||||||||||
Depreciation and amortization | 354 | 273 | 5,648 | 9,198 | 25,112 | ||||||||||||||
Interest expense, net | 13,808 | 13,744 | 11,622 | 54,562 | 45,204 | ||||||||||||||
Segment adjusted EBITDA | $ | (9,624 | ) | $ | (12,837 | ) | $ | (7,390 | ) | $ | (38,926 | ) | $ | (25,716 | ) |
Free Cash Flow | |||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Free Cash Flow | |||||||||||||||||||
Cash provided by operating activities | $ | 168,953 | $ | 163,030 | $ | 195,093 | $ | 540,271 | $ | 413,360 | |||||||||
Less: Capital expenditures, net of proceeds from sale of fixed assets | (29,142 | ) | (48,469 | ) | (26,463 | ) | (127,779 | ) | (84,791 | ) | |||||||||
Free cash flow | $ | 139,811 | $ | 114,561 | $ | 168,630 | $ | 412,492 | $ | 328,569 | |||||||||
Cash From Operating Activities to Revenue Ratio | |||||||||||||||||||
Cash provided by operating activities | $ | 168,953 | $ | 163,030 | $ | 195,093 | $ | 540,271 | $ | 413,360 | |||||||||
Revenue | $ | 943,555 | $ | 939,783 | $ | 985,855 | $ | 3,758,285 | $ | 3,805,948 | |||||||||
Cash from operating activities to revenue ratio | 18 | % | 17 | % | 20 | % | 14 | % | 11 | % | |||||||||
Free Cash Flow to Revenue Ratio | |||||||||||||||||||
Free cash flow | $ | 139,811 | $ | 114,561 | $ | 168,630 | $ | 412,492 | $ | 328,569 | |||||||||
Revenue | $ | 943,555 | $ | 939,783 | $ | 985,855 | $ | 3,758,285 | $ | 3,805,948 | |||||||||
Free cash flow to revenue ratio | 15 | % | 12 | % | 17 | % | 11 | % | 9 | % | |||||||||
Free Cash Flow to Adjusted EBITDA Ratio | |||||||||||||||||||
Free cash flow | $ | 139,811 | $ | 114,561 | $ | 168,630 | $ | 412,492 | $ | 328,569 | |||||||||
Adjusted EBITDA | $ | 198,145 | $ | 197,536 | $ | 179,410 | $ | 771,221 | $ | 617,158 | |||||||||
Free cash flow to adjusted EBITDA ratio | 71 | % | 58 | % | 94 | % | 53 | % | 53 | % |
HISTORICAL BUSINESS SEGMENT DATA (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||
Segment revenue: | |||||||||||||||||||
Production Chemical Technologies | 591,684 | 574,302 | 604,254 | 634,137 | $ | 2,404,377 | |||||||||||||
Production & Automation Technologies | 251,548 | 254,156 | 256,148 | 241,294 | 1,003,146 | ||||||||||||||
Drilling Technologies | 56,707 | 57,324 | 54,869 | 46,821 | 215,721 | ||||||||||||||
Reservoir Chemical Technologies | 25,806 | 23,853 | 25,093 | 21,402 | 96,154 | ||||||||||||||
Corporate and other | 22,602 | 16,965 | (581 | ) | (99 | ) | 38,887 | ||||||||||||
Total revenue | $ | 948,347 | $ | 926,600 | $ | 939,783 | $ | 943,555 | $ | 3,758,285 | |||||||||
Income (loss) before income taxes: | |||||||||||||||||||
Segment operating profit (loss): | |||||||||||||||||||
Production Chemical Technologies | 66,314 | 87,163 | 94,560 | 102,179 | $ | 350,216 | |||||||||||||
Production & Automation Technologies | 34,792 | 33,208 | 28,299 | 22,110 | 118,409 | ||||||||||||||
Drilling Technologies | 11,887 | 12,660 | 12,255 | 8,679 | 45,481 | ||||||||||||||
Reservoir Chemical Technologies | 1,987 | 2,186 | 2,461 | 3,907 | 10,541 | ||||||||||||||
Total segment operating profit | 114,980 | 135,217 | 137,575 | 136,875 | 524,647 | ||||||||||||||
Corporate and other | 10,701 | 12,391 | 14,030 | 9,139 | 46,261 | ||||||||||||||
Interest expense, net | 12,466 | 14,544 | 13,744 | 13,808 | 54,562 | ||||||||||||||
Income before income taxes | $ | 91,813 | $ | 108,282 | $ | 109,801 | $ | 113,928 | $ | 423,824 | |||||||||
Operating profit margin / income (loss) before income taxes margin: | |||||||||||||||||||
Production Chemical Technologies | 11.2 | % | 15.2 | % | 15.6 | % | 16.1 | % | 14.6 | % | |||||||||
Production & Automation Technologies | 13.8 | % | 13.1 | % | 11.0 | % | 9.2 | % | 11.8 | % | |||||||||
Drilling Technologies | 21.0 | % | 22.1 | % | 22.3 | % | 18.5 | % | 21.1 | % | |||||||||
Reservoir Chemical Technologies | 7.7 | % | 9.2 | % | 9.8 | % | 18.3 | % | 11.0 | % | |||||||||
ChampionX Consolidated | 9.7 | % | 11.7 | % | 11.7 | % | 12.1 | % | 11.3 | % | |||||||||
Adjusted EBITDA | |||||||||||||||||||
Production Chemical Technologies | $ | 113,608 | $ | 121,175 | $ | 133,101 | $ | 139,107 | $ | 506,991 | |||||||||
Production & Automation Technologies | 59,943 | 60,641 | 59,288 | 52,800 | 232,672 | ||||||||||||||
Drilling Technologies | 13,463 | 14,376 | 13,786 | 10,361 | 51,986 | ||||||||||||||
Reservoir Chemical Technologies | 4,414 | 4,385 | 4,198 | 5,501 | 18,498 | ||||||||||||||
Corporate and other | (6,569 | ) | (9,896 | ) | (12,837 | ) | (9,624 | ) | (38,926 | ) | |||||||||
Adjusted EBITDA | $ | 184,859 | $ | 190,681 | $ | 197,536 | $ | 198,145 | $ | 771,221 | |||||||||
Adjusted EBITDA margin | |||||||||||||||||||
Production Chemical Technologies | 19.2 | % | 21.1 | % | 22.0 | % | 21.9 | % | 21.1 | % | |||||||||
Production & Automation Technologies | 23.8 | % | 23.9 | % | 23.1 | % | 21.9 | % | 23.2 | % | |||||||||
Drilling Technologies | 23.7 | % | 25.1 | % | 25.1 | % | 22.1 | % | 24.1 | % | |||||||||
Reservoir Chemical Technologies | 17.1 | % | 18.4 | % | 16.7 | % | 25.7 | % | 19.2 | % | |||||||||
ChampionX Consolidated | 19.5 | % | 20.6 | % | 21.0 | % | 21.0 | % | 20.5 | % |
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
Segment revenue: | |||||||||||||||||||
Production Chemical Technologies | 514,972 | 552,411 | 643,604 | 636,539 | $ | 2,347,526 | |||||||||||||
Production & Automation Technologies | 220,349 | 242,399 | 247,717 | 244,181 | 954,646 | ||||||||||||||
Drilling Technologies | 56,859 | 57,858 | 60,965 | 53,797 | 229,479 | ||||||||||||||
Reservoir Chemical Technologies | 39,900 | 44,114 | 35,485 | 25,698 | 145,197 | ||||||||||||||
Corporate and other | 33,880 | 35,790 | 33,790 | 25,640 | 129,100 | ||||||||||||||
Total revenue | $ | 865,960 | $ | 932,572 | $ | 1,021,561 | $ | 985,855 | $ | 3,805,948 | |||||||||
Income (loss) before income taxes: | |||||||||||||||||||
Segment operating profit (loss): | |||||||||||||||||||
Production Chemical Technologies | $ | 31,263 | $ | 25,606 | $ | 86,649 | $ | 96,418 | $ | 239,936 | |||||||||
Production & Automation Technologies | 24,710 | 23,650 | 22,485 | 18,104 | 89,133 | ||||||||||||||
Drilling Technologies | 15,220 | 15,043 | 14,856 | 9,426 | 54,512 | ||||||||||||||
Reservoir Chemical Technologies | (3,469 | ) | (8,147 | ) | (61,711 | ) | (16,884 | ) | (90,212 | ) | |||||||||
Total segment operating profit | 67,724 | 56,152 | 62,279 | 107,064 | 293,369 | ||||||||||||||
Corporate and other | 11,794 | 17,896 | 13,354 | 8,165 | 51,359 | ||||||||||||||
Interest expense, net | 11,363 | 10,765 | 11,454 | 11,622 | 45,204 | ||||||||||||||
Income before income taxes | $ | 44,567 | $ | 27,491 | $ | 37,471 | $ | 87,277 | $ | 196,806 | |||||||||
Operating profit margin / income (loss) before income taxes margin: | |||||||||||||||||||
Production Chemical Technologies | 6.1 | % | 4.6 | % | 13.5 | % | 15.1 | % | 10.2 | % | |||||||||
Production & Automation Technologies | 11.2 | % | 9.8 | % | 9.1 | % | 7.4 | % | 9.3 | % | |||||||||
Drilling Technologies | 26.8 | % | 26.0 | % | 24.4 | % | 17.5 | % | 23.8 | % | |||||||||
Reservoir Chemical Technologies | (8.7 | )% | (18.5 | )% | (173.9 | )% | (65.7 | )% | (62.1 | )% | |||||||||
ChampionX Consolidated | 5.1 | % | 2.9 | % | 3.7 | % | 8.9 | % | 5.2 | % | |||||||||
Adjusted EBITDA | |||||||||||||||||||
Production Chemical Technologies | $ | 69,340 | $ | 80,743 | $ | 106,202 | $ | 121,204 | $ | 377,489 | |||||||||
Production & Automation Technologies | 45,257 | 48,797 | 52,262 | 51,137 | 197,453 | ||||||||||||||
Drilling Technologies | 17,319 | 17,088 | 16,526 | 10,999 | 61,932 | ||||||||||||||
Reservoir Chemical Technologies | (191 | ) | (300 | ) | 3,031 | 3,460 | 6,000 | ||||||||||||
Corporate and other | (4,124 | ) | (5,809 | ) | (8,393 | ) | (7,390 | ) | (25,716 | ) | |||||||||
Adjusted EBITDA | $ | 127,601 | $ | 140,519 | $ | 169,628 | $ | 179,410 | $ | 617,158 | |||||||||
Adjusted EBITDA margin | |||||||||||||||||||
Production Chemical Technologies | 13.5 | % | 14.6 | % | 16.5 | % | 19.0 | % | 16.1 | % | |||||||||
Production & Automation Technologies | 20.5 | % | 20.1 | % | 21.1 | % | 20.9 | % | 20.7 | % | |||||||||
Drilling Technologies | 30.5 | % | 29.5 | % | 27.1 | % | 20.4 | % | 27.0 | % | |||||||||
Reservoir Chemical Technologies | (0.5 | )% | (0.7 | )% | 8.5 | % | 13.5 | % | 4.1 | % | |||||||||
ChampionX Consolidated | 14.7 | % | 15.1 | % | 16.6 | % | 18.2 | % | 16.2 | % |
HISTORICAL RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||
Net income attributable to | $ | 63,532 | $ | 95,797 | $ | 77,711 | $ | 77,198 | $ | 314,238 | |||||||||
Pre-tax adjustments: | |||||||||||||||||||
Loss on disposal groups (1) | 12,965 | — | — | — | 12,965 | ||||||||||||||
521 | 433 | 95 | 160 | 1,209 | |||||||||||||||
Restructuring and other related charges | 4,399 | 5,353 | 1,228 | 2,407 | 13,387 | ||||||||||||||
Merger integration costs | 245 | — | — | — | 245 | ||||||||||||||
Acquisition costs and related adjustments (3) | (3,512 | ) | (2,341 | ) | — | (6,817 | ) | (12,670 | ) | ||||||||||
Intellectual property defense | — | 687 | 220 | 638 | 1,545 | ||||||||||||||
Merger-related indemnification responsibility | — | — | 722 | — | 722 | ||||||||||||||
— | 607 | 1,895 | 660 | 3,162 | |||||||||||||||
Foreign currency transaction losses, net | 9,252 | 4,439 | 7,992 | 14,651 | 36,334 | ||||||||||||||
Tax impact of adjustments | (5,307 | ) | (2,041 | ) | (2,702 | ) | (2,600 | ) | (12,650 | ) | |||||||||
Adjusted net income attributable to | 82,095 | 102,934 | 87,161 | 86,297 | 358,487 | ||||||||||||||
Tax impact of adjustments | 5,307 | 2,041 | 2,702 | 2,600 | 12,650 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | (388 | ) | 829 | 3,081 | 959 | 4,481 | |||||||||||||
Depreciation and amortization | 56,710 | 58,677 | 61,839 | 58,710 | 235,936 | ||||||||||||||
Provision for income taxes | 28,669 | 11,656 | 29,009 | 35,771 | 105,105 | ||||||||||||||
Interest expense, net | 12,466 | 14,544 | 13,744 | 13,808 | 54,562 | ||||||||||||||
Adjusted EBITDA | $ | 184,859 | $ | 190,681 | $ | 197,536 | $ | 198,145 | $ | 771,221 |
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
Net income attributable to | $ | 36,702 | $ | 27,342 | $ | 23,068 | $ | 67,857 | $ | 154,969 | |||||||||
Pre-tax adjustments: | |||||||||||||||||||
Loss on disposal groups (1) | — | 22,924 | (6,409 | ) | 1,978 | 18,493 | |||||||||||||
— | 5,457 | (1,620 | ) | (2,909 | ) | 928 | |||||||||||||
— | — | — | 39,617 | 39,617 | |||||||||||||||
Loss on debt extinguishment and modification | — | 6,070 | — | — | 6,070 | ||||||||||||||
Restructuring and other related charges | 9,107 | 5,302 | 67,533 | (16,784 | ) | 65,158 | |||||||||||||
Merger integration costs | 5,241 | 3,865 | 652 | 1,001 | 10,759 | ||||||||||||||
Acquisition costs and related adjustments (3) | (3,512 | ) | (3,512 | ) | (3,512 | ) | (7,112 | ) | (17,648 | ) | |||||||||
Intellectual property defense | 363 | 376 | 15 | 27 | 781 | ||||||||||||||
Foreign currency transaction losses, net | 2,773 | 2,251 | 3,512 | 574 | 9,110 | ||||||||||||||
Tax impact of adjustments | (2,934 | ) | (8,974 | ) | (12,636 | ) | 3,604 | (20,940 | ) | ||||||||||
Adjusted net income attributable to | 47,740 | 61,101 | 70,603 | 87,853 | 267,297 | ||||||||||||||
Tax impact of adjustments | 2,934 | 8,974 | 12,636 | (3,604 | ) | 20,940 | |||||||||||||
Net income (loss) attributable to noncontrolling interest | 1,471 | 1,554 | 157 | (1,588 | ) | 1,594 | |||||||||||||
Depreciation and amortization | 57,699 | 59,530 | 60,532 | 64,119 | 241,880 | ||||||||||||||
Provision for (benefit from) income taxes | 6,394 | (1,405 | ) | 14,246 | 21,008 | 40,243 | |||||||||||||
Interest expense, net | 11,363 | 10,765 | 11,454 | 11,622 | 45,204 | ||||||||||||||
Adjusted EBITDA | $ | 127,601 | $ | 140,519 | $ | 169,628 | $ | 179,410 | $ | 617,158 |
HISTORICAL RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||
Production Chemical Technologies | |||||||||||||||||||
Segment operating profit | $ | 66,314 | $ | 87,163 | $ | 94,560 | $ | 102,179 | $ | 350,216 | |||||||||
Non-GAAP adjustments | 23,115 | 8,329 | 9,079 | 11,194 | 51,717 | ||||||||||||||
Depreciation and amortization | 24,179 | 25,683 | 29,462 | 25,734 | 105,058 | ||||||||||||||
Segment adjusted EBITDA | $ | 113,608 | $ | 121,175 | $ | 133,101 | $ | 139,107 | $ | 506,991 | |||||||||
Production & Automation Technologies | |||||||||||||||||||
Segment operating profit | $ | 34,792 | $ | 33,208 | $ | 28,299 | $ | 22,110 | $ | 118,409 | |||||||||
Non-GAAP adjustments | 914 | 1,012 | 2,089 | 1,231 | 5,246 | ||||||||||||||
Depreciation and amortization | 24,237 | 26,421 | 28,900 | 29,459 | 109,017 | ||||||||||||||
Segment adjusted EBITDA | $ | 59,943 | $ | 60,641 | $ | 59,288 | $ | 52,800 | $ | 232,672 | |||||||||
Drilling Technologies | |||||||||||||||||||
Segment operating profit | $ | 11,887 | $ | 12,660 | $ | 12,255 | $ | 8,679 | $ | 45,481 | |||||||||
Non-GAAP adjustments | — | 212 | (8 | ) | 109 | 313 | |||||||||||||
Depreciation and amortization | 1,576 | 1,504 | 1,539 | 1,573 | 6,192 | ||||||||||||||
Segment adjusted EBITDA | $ | 13,463 | $ | 14,376 | $ | 13,786 | $ | 10,361 | $ | 51,986 | |||||||||
Reservoir Chemical Technologies | |||||||||||||||||||
Segment operating profit | $ | 1,987 | $ | 2,186 | $ | 2,461 | $ | 3,907 | $ | 10,541 | |||||||||
Non-GAAP adjustments | 810 | 600 | 72 | 4 | 1,486 | ||||||||||||||
Depreciation and amortization | 1,617 | 1,599 | 1,665 | 1,590 | 6,471 | ||||||||||||||
Segment adjusted EBITDA | $ | 4,414 | $ | 4,385 | $ | 4,198 | $ | 5,501 | $ | 18,498 | |||||||||
Corporate and other | |||||||||||||||||||
Segment operating profit | $ | (23,167 | ) | $ | (26,935 | ) | $ | (27,774 | ) | $ | (22,947 | ) | $ | (100,823 | ) | ||||
Non-GAAP adjustments | (969 | ) | (975 | ) | 920 | (839 | ) | (1,863 | ) | ||||||||||
Depreciation and amortization | 5,101 | 3,470 | 273 | 354 | 9,198 | ||||||||||||||
Interest expense, net | 12,466 | 14,544 | 13,744 | 13,808 | 54,562 | ||||||||||||||
Segment adjusted EBITDA | $ | (6,569 | ) | $ | (9,896 | ) | $ | (12,837 | ) | $ | (9,624 | ) | $ | (38,926 | ) |
HISTORICAL RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
Production Chemical Technologies | |||||||||||||||||||
Segment operating profit | $ | 31,263 | $ | 25,606 | $ | 86,649 | $ | 96,418 | $ | 239,936 | |||||||||
Non-GAAP adjustments | 14,100 | 31,072 | (1,197 | ) | 1,703 | 45,678 | |||||||||||||
Depreciation and amortization | 23,977 | 24,065 | 20,750 | 23,083 | 91,875 | ||||||||||||||
Segment adjusted EBITDA | $ | 69,340 | $ | 80,743 | $ | 106,202 | $ | 121,204 | $ | 377,489 | |||||||||
Production & Automation Technologies | |||||||||||||||||||
Segment operating profit | $ | 24,710 | $ | 23,650 | $ | 22,485 | $ | 18,104 | $ | 89,133 | |||||||||
Non-GAAP adjustments | (3,938 | ) | 430 | 4,442 | 3,977 | 4,728 | |||||||||||||
Depreciation and amortization | 24,485 | 24,717 | 25,335 | 29,055 | 103,592 | ||||||||||||||
Segment adjusted EBITDA | $ | 45,257 | $ | 48,797 | $ | 52,262 | $ | 51,137 | $ | 197,453 | |||||||||
Drilling Technologies | |||||||||||||||||||
Segment operating profit | $ | 15,220 | $ | 15,043 | $ | 14,856 | $ | 9,426 | $ | 54,512 | |||||||||
Non-GAAP adjustments | 363 | 376 | 15 | (6 | ) | 781 | |||||||||||||
Depreciation and amortization | 1,736 | 1,669 | 1,655 | 1,579 | 6,639 | ||||||||||||||
Segment adjusted EBITDA | $ | 17,319 | $ | 17,088 | $ | 16,526 | $ | 10,999 | $ | 61,932 | |||||||||
Reservoir Chemical Technologies | |||||||||||||||||||
Segment operating profit | $ | (3,469 | ) | $ | (8,147 | ) | $ | (61,711 | ) | $ | (16,884 | ) | $ | (90,212 | ) | ||||
Non-GAAP adjustments | 802 | 4,005 | 61,152 | 15,589 | 81,550 | ||||||||||||||
Depreciation and amortization | 2,476 | 3,842 | 3,590 | 4,754 | 14,662 | ||||||||||||||
Segment adjusted EBITDA | $ | (191 | ) | $ | (300 | ) | $ | 3,031 | $ | 3,460 | $ | 6,000 | |||||||
Corporate and other | |||||||||||||||||||
Segment operating profit | $ | (23,157 | ) | $ | (28,661 | ) | $ | (24,808 | ) | $ | (19,787 | ) | $ | (96,563 | ) | ||||
Non-GAAP adjustments | 2,645 | 6,850 | (4,241 | ) | (4,870 | ) | 531 | ||||||||||||
Depreciation and amortization | 5,025 | 5,237 | 9,202 | 5,648 | 25,112 | ||||||||||||||
Interest expense, net | 11,363 | 10,765 | 11,454 | 11,622 | 45,204 | ||||||||||||||
Segment adjusted EBITDA | $ | (4,124 | ) | $ | (5,809 | ) | $ | (8,393 | ) | $ | (7,390 | ) | $ | (25,716 | ) |
Free Cash Flow | |||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2023 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||
Free Cash Flow | |||||||||||||||||||
Cash provided by operating activities | $ | 92,378 | $ | 115,910 | $ | 163,030 | $ | 168,953 | $ | 540,271 | |||||||||
Less: Capital expenditures, net of proceeds from sale of fixed assets | (23,025 | ) | (27,143 | ) | (48,469 | ) | (29,142 | ) | (127,779 | ) | |||||||||
Free cash flow | $ | 69,353 | $ | 88,767 | $ | 114,561 | $ | 139,811 | $ | 412,492 | |||||||||
Free Cash Flow to Adjusted EBITDA Ratio | |||||||||||||||||||
Free cash flow | $ | 69,353 | $ | 88,767 | $ | 114,561 | $ | 139,811 | $ | 412,492 | |||||||||
Adjusted EBITDA | $ | 184,859 | $ | 190,681 | $ | 197,536 | $ | 198,145 | $ | 771,221 | |||||||||
Free cash flow to adjusted EBITDA ratio | 38 | % | 47 | % | 58 | % | 71 | % | 53 | % |
Three Months Ended | Year Ended | ||||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
Free Cash Flow | |||||||||||||||||||
Cash provided by operating activities | $ | (43,125 | ) | $ | 74,240 | $ | 187,152 | $ | 195,093 | $ | 413,360 | ||||||||
Less: Capital expenditures, net of proceeds from sale of fixed assets | (17,866 | ) | (20,743 | ) | (19,719 | ) | (26,463 | ) | (84,791 | ) | |||||||||
Free cash flow | $ | (60,991 | ) | $ | 53,497 | $ | 167,433 | $ | 168,630 | $ | 328,569 | ||||||||
Free Cash Flow to Adjusted EBITDA Ratio | |||||||||||||||||||
Free cash flow | $ | (60,991 | ) | $ | 53,497 | $ | 167,433 | $ | 168,630 | $ | 328,569 | ||||||||
Adjusted EBITDA | $ | 184,859 | $ | 190,681 | $ | 197,536 | $ | 198,145 | $ | 771,221 | |||||||||
Free cash flow to adjusted EBITDA ratio | (33 | )% | 28 | % | 85 | % | 85 | % | 43 | % |
Source:
2024 GlobeNewswire, Inc., source