~ Posted Increase in Year-Over-Year Revenues, Segment Profit and Net Income ~
~ Grew Adjusted EBITDA by 125% from Q1 2023 ~
FINANCIAL SUMMARY
(in 000’s, except per share data)
Q1 2024 | Q1 2023 | % Change | ||
Revenues | $ 9,792 | $ 8,912 | 10% | |
Production services | $ 2,485 | $ 2,863 | (13%) | |
Completion and other services | $7,307 | $ 6,049 | 21% | |
Segment profit | $ 3,261 | $ 2,015 | 62% | |
Production services | $ 364 | $ 546 | (33%) | |
Completion and other services | $ 2,897 | $ 1,469 | 97% | |
Income (loss) from operations | $ 1,262 | ($ 459) | NM | |
Net income (loss) | $ 740 | ($ 1,004) | NM | |
Per diluted share | $ 0.03 | ($ 0.07) | NM | |
Adjusted EBITDA(1) | $ 2,222 | $ 986 | 125% |
NM: Not meaningful.
(1) A non-GAAP financial measure; see the “Non-GAAP Information” section in this release for more information including reconciliations to the most comparable GAAP measures.
Q1 2024 HIGHLIGHTS
- Grew revenues 10% from Q1 2023 with the Company’s primarily seasonal-focused completions services revenue increase partially offset by a production services revenue decrease;
- Drove segment profit increase of 62% year-over-year primarily due to overall top-line growth complemented by execution of further operating efficiency initiatives and related cost savings;
- Reduced general and administrative expenses 18% from prior year;
- Improved profit position to net income of
$0.7 million , or$0.03 per diluted share – an increase from a net loss of$1.0 million , or$0.07 per diluted share, for Q1 2023; - Increased year-over-year Adjusted EBITDA by 125% to
$2.2 million ; - Announced agreement to acquire
Buckshot Trucking LLC , an experienced and profitable energy logistics business (the “Transaction”);- Expected to generate increased operational and financial flexibility with addition of year-round business highlighted by significant growth opportunities and non-dependence on weather related business; and
- Evaluating various financing alternatives with closing of the Transaction targeted in early Q3 2024.
MANAGEMENT COMMENTARY
Murphy continued, “While the first quarter benefited from improved seasonal conditions for our frac water heating services business, our performance during the period also highlighted our efforts to drive further improvements throughout the Company. These initiatives were muti-faceted and included reducing our footprint to focus only on operations that provide the best economic returns, lowering costs and streamlining processes throughout the organization, and taking necessary steps to enhance the Company’s financial outlook. Combined with our pending acquisition of Buckshot, we believe
Q1 2024 FINANCIAL RESULTS
Total revenues were
- Production services revenue, which includes hot oiling and acidizing services, decreased to
$2.5 million from$2.9 million in the same quarter last year, primarily due to decreased acidizing services in the Company’sTexas region, combined with decreased hot oiling activity levels in Enservco’sPennsylvania andTexas regions. Production services generated a segment profit of$0.4 million compared to a segment profit of$0.5 million in Q1 2023. - Completion services revenue, which is primarily seasonal-focused frac water heating services, grew to
$7.3 million from$6.0 million in the prior year quarter. Primarily driving the increase was colder weather in 2024 relative to the prior year that led to increases in frac water heating service activity levels. In addition, service price increases in the Company’sPennsylvania andColorado regions contributed to the growth in year-over-year revenue. Completion services generated a segment profit of$2.9 million compared to a profit of$1.5 million in the same quarter last year.
Operating profit improved to
The Company reported net income of
Adjusted EBITDA was
BUCKSHOT TRANSACTION & OTHER UPDATES
Separately,
CONFERENCE CALL & ADDITIONAL INFORMATION
The Company has scheduled a conference call on Thursday,
In addition, interested parties can participate through the webcast by accessing the following link:
https://www.webcaster4.com/Webcast/Page/2228/50645
Like callers, participants should access the webcast at least five minutes prior to start time. In addition, a replay of the webcast will be available following the call through the above link.
ABOUT
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains information that is "forward-looking" in that it describes events and conditions
CONTACT
Chief Financial Officer
mpatterson@enservco.com
ENSERVCO CORPORATION AND SUBSIDIARY Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) | |||||||||
For the Three Months Ended | |||||||||
2024 | 2023 | ||||||||
Revenues: | |||||||||
Production services | $ | 2,485 | $ | 2,863 | |||||
Completion and other services | 7,307 | 6,049 | |||||||
Total revenues | 9,792 | 8,912 | |||||||
Expenses: | |||||||||
Production services | 2,121 | 2,317 | |||||||
Completion and other services | 4,410 | 4,580 | |||||||
Sales, general, and administrative | 1,232 | 1,503 | |||||||
Severance and transition | - | 1 | |||||||
Gain on disposal of assets | - | (1 | ) | ||||||
Depreciation and amortization | 767 | 971 | |||||||
Total operating expenses | 8,530 | 9,371 | |||||||
Income (loss) from operations | 1,262 | (459 | ) | ||||||
Other (expense) income: | |||||||||
Interest expense | (578 | ) | (590 | ) | |||||
Other income | 56 | 29 | |||||||
Total other expense, net | (522 | ) | (561 | ) | |||||
Income (loss) before taxes | 740 | (1,020 | ) | ||||||
Deferred income tax benefit | - | 16 | |||||||
Net income (loss) | $ | 740 | $ | (1,004 | ) | ||||
Net income (loss) per share: | |||||||||
Basic | $ | 0.03 | $ | (0.07 | ) | ||||
Diluted | $ | 0.03 | $ | (0.07 | ) | ||||
Weighted average number of common shares outstanding: | |||||||||
Basic | 26,934 | 14,808 | |||||||
Diluted | 30,284 | 14,808 |
ENSERVCO CORPORATION AND SUBSIDIARY Condensed Consolidated Balance Sheets (In thousands, except share and per share amounts) | ||||||||
2024 | 2023 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 474 | $ | 201 | ||||
Accounts receivable, net | 4,248 | 4,190 | ||||||
Prepaid expenses and other current assets | 870 | 1,047 | ||||||
Inventories | 219 | 209 | ||||||
Note receivable | 75 | 75 | ||||||
Total Current Assets | 5,886 | 5,722 | ||||||
Property and equipment, net | 6,235 | 6,923 | ||||||
Intangible assets, net | 67 | - | ||||||
Right-of-use asset - finance, net | 6 | 9 | ||||||
Right-of-use asset - operating, net | 759 | 891 | ||||||
Note receivable, less current portion | 125 | 144 | ||||||
Other assets | 182 | 183 | ||||||
Total Assets | $ | 13,260 | $ | 13,872 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 3,104 | $ | 4,285 | ||||
Utica Facility | 1,684 | 1,595 | ||||||
LSQ Facility | 2,739 | 2,472 | ||||||
1,079 | 1,027 | |||||||
September and | 1,660 | - | ||||||
Lease liability - finance | 6 | 10 | ||||||
Lease liability - operating | 395 | 441 | ||||||
Other current liabilities | 200 | 198 | ||||||
Total Current Liabilities | 10,867 | 10,028 | ||||||
Utica Facility, less current portion | 1,075 | 1,690 | ||||||
September and | - | 1,656 | ||||||
Utica Residual Liability | 293 | 256 | ||||||
Lease liability - finance, less current portion | 10 | 6 | ||||||
Lease liability - operating, less current portion | 436 | 528 | ||||||
Deferred tax liabilities | 222 | 222 | ||||||
Other non-current liabilities | 7 | 58 | ||||||
Total Liabilities | 12,910 | 14,444 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity (Deficit): | ||||||||
Preferred stock, | - | - | ||||||
Common stock, $0.005 par value, 100,000,000 shares authorized; 27,362,742 and 26,592,637 shares issued as of March 31, 2024 and | 135 | 131 | ||||||
Additional paid-in capital | 49,148 | 48,970 | ||||||
Accumulated deficit | (48,933 | ) | (49,673 | ) | ||||
Total Stockholders' Equity (Deficit) | 350 | (572 | ) | |||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 13,260 | $ | 13,872 |
ENSERVCO CORPORATION AND SUBSIDIARY Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Operating Activities: | ||||||||
Net income (loss) | $ | 740 | $ | (1,004 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 767 | 971 | ||||||
Gain on disposal of equipment | - | (1 | ) | |||||
Stock-based compensation | 76 | 196 | ||||||
LSQ Facility interest paid-in-kind | 126 | - | ||||||
Amortization of debt issuance costs and discount | 77 | 70 | ||||||
Deferred income tax benefit | - | (16 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (58 | ) | 243 | |||||
Inventories | (10 | ) | (1 | ) | ||||
Prepaid expense and other current assets | 178 | 481 | ||||||
Amortization of operating lease assets | 132 | 139 | ||||||
Other assets | 1 | 17 | ||||||
Accounts payable and accrued liabilities | (924 | ) | (1,189 | ) | ||||
Operating lease liabilities | (138 | ) | (143 | ) | ||||
Other liabilities | 92 | (242 | ) | |||||
Net cash provided by (used in) operating activities | 1,059 | (479 | ) | |||||
Investing Activities: | ||||||||
Purchases of property and equipment | (77 | ) | (49 | ) | ||||
Proceeds from disposals of property and equipment | - | 9 | ||||||
Purchase of intangible | (67 | ) | - | |||||
Collections on note receivable | 19 | 25 | ||||||
Net cash used in investing activities | (125 | ) | (15 | ) | ||||
Financing Activities: | ||||||||
Proceeds from | - | 2,952 | ||||||
Net LSQ Facility borrowings (repayments) | 140 | (334 | ) | |||||
Utica Facility repayments | (545 | ) | (294 | ) | ||||
Repayments of long-term debt | - | (15 | ) | |||||
Payments on financed insurance | (256 | ) | (79 | ) | ||||
Net cash (used in) provided by financing activities | (661 | ) | 2,230 | |||||
Net Increase in Cash and Cash Equivalents | 273 | 1,736 | ||||||
Cash and Cash Equivalents, beginning of period | 201 | 35 | ||||||
Cash and Cash Equivalents, end of period | $ | 474 | $ | 1,771 | ||||
NON-GAAP INFORMATION
This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings (net income or loss) plus or minus net interest taxes, depreciation, and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing Enservco’s operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net loss in the table below. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Reconciliation from Net Income (Loss) to Adjusted EBITDA | ||||||||
Net income (loss) | $ | 740 | $ | (1,004 | ) | |||
Add back (deduct): | ||||||||
Interest expense | 578 | 590 | ||||||
Deferred income tax benefit | - | (16 | ) | |||||
Depreciation and amortization | 767 | 971 | ||||||
EBITDA (non-GAAP) | 2,085 | 541 | ||||||
Add back (deduct): | ||||||||
Stock-based compensation | 76 | 196 | ||||||
Severance and transition costs | - | 1 | ||||||
Non-recurring legal and transaction costs | 117 | 278 | ||||||
Gain on disposal of assets | - | (1 | ) | |||||
Other income | (56 | ) | (29 | ) | ||||
Adjusted EBITDA (non-GAAP) | $ | 2,222 | $ | 986 | ||||
Source:
2024 GlobeNewswire, Inc., source