Atlas Energy Solutions Announces Third Quarter 2024 Results; Increases Quarterly Dividend and Announces Authorization for $200mm Share Buyback Program
Third Quarter 2024 Highlights
-
Total sales of
$304.4 million -
Net income of
$3.9 million (1% Net Income Margin) -
Adjusted EBITDA of
$71.1 million (23% Adjusted EBITDA Margin) (1) -
Net cash provided by operating activities of
$85.2 million -
Adjusted Free Cash Flow of
$58.7 million (19% Adjusted Free Cash Flow Margin) (1) - Commissioning activities for the Dune Express underway
-
Declares increased quarterly dividend of
$0.24 per share, payableNovember 14, 2024
Financial Summary
. |
|
Three Months Ended |
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|
|
|
|
|
|
|
|
|
|
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||||
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(unaudited, in thousands, except percentages) |
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Sales |
|
$ |
304,434 |
|
|
$ |
287,518 |
|
|
$ |
192,667 |
|
|
$ |
157,616 |
|
Net income |
|
$ |
3,918 |
|
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
56,327 |
|
Net Income Margin |
|
|
1 |
% |
|
|
5 |
% |
|
|
14 |
% |
|
|
36 |
% |
Adjusted EBITDA |
|
$ |
71,051 |
|
|
$ |
79,072 |
|
|
$ |
75,543 |
|
|
$ |
84,078 |
|
Adjusted EBITDA Margin |
|
|
23 |
% |
|
|
28 |
% |
|
|
39 |
% |
|
|
53 |
% |
Net cash provided by operating activities |
|
$ |
85,189 |
|
|
$ |
60,856 |
|
|
$ |
39,562 |
|
|
$ |
55,406 |
|
Adjusted Free Cash Flow |
|
$ |
58,669 |
|
|
$ |
73,654 |
|
|
$ |
71,083 |
|
|
$ |
68,521 |
|
Adjusted Free Cash Flow Margin |
|
|
19 |
% |
|
|
26 |
% |
|
|
37 |
% |
|
|
43 |
% |
(1) |
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial Measures for a discussion of these measures and a reconciliation of these measures to our most directly comparable financial measures calculated and presented in accordance with GAAP. |
Third Quarter 2024 Financial Results
Third quarter 2024 total sales increased
Third quarter 2024 cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) increased by
Selling, general and administrative expenses (“SG&A”) for the third quarter of 2024 decreased
Net income for the third quarter of 2024 was
Liquidity, Capital Expenditures and Other
As of
Net cash used in investing activities was
Quarterly Cash Dividend
On
Subsequent Events
Share Buyback Program
Subsequent to quarter end, the Board of Directors of Atlas authorized a share repurchase program under which the Company may repurchase up to
The shares may be repurchased from time to time in open market transactions at prevailing market prices, through block trades, in privately negotiated transactions, through derivative transactions or by other means and in accordance with federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors including management's assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements, applicable legal requirements, and other considerations. The exact number of shares to be repurchased by the Company is not guaranteed, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand and expected free cash flow to be generated over the next two years.
Conference Call Information
The Company will host a conference call to discuss financial and operational results on
The Company will also post an updated investor presentation titled “Investor Presentation October 2024”, in addition to a "
About Atlas Energy Solutions
We are a low-cost producer of various high-quality, locally sourced proppants used during the well completion process. We offer both dry and damp sand, and carry various mesh sizes including 100 mesh and 40/70 mesh. Proppant is a key component necessary to facilitate the recovery of hydrocarbons from oil and natural gas wells.
Our logistics platform is designed to increase the efficiency, safety and sustainability of the oil and natural gas industry within the
We continue to invest in and pursue leading-edge technologies, including autonomous trucking, digital infrastructure, and artificial intelligence, to support opportunities to gain efficiencies in our operations. To this end, we have recently taken delivery of next-generation dredge mining assets to drive efficiencies in our proppant production operations. These technology-focused investments aim to improve our cost structure and also combine to produce beneficial environmental and community impacts.
While our core business is fundamentally aligned with a lower emissions economy, our core obligation has been, and will always be, to our stockholders. We recognize that maximizing value for our stockholders requires that we optimize the outcomes for our broader stakeholders, including our employees and the communities in which we operate. We are proud of the fact that our approach to innovation in the hydrocarbon industry while operating in an environmentally responsible manner creates immense value. Since our founding in 2017, our core mission has been to improve human beings’ access to the hydrocarbons that power our lives while also delivering differentiated social and environmental progress. Our Atlas team has driven innovation and has produced industry-leading environmental benefits by reducing energy consumption, emissions, and our aerial footprint. We call this Sustainable Environmental and Social Progress.
We were founded in 2017 by Ben M. “Bud” Brigham, our Executive Chairman, and are led by an entrepreneurial team with a history of constructive disruption bringing significant and complementary experience to this enterprise, including the perspective of longtime E&P operators, which provides for an elevated understanding of the end users of our products and services. Our executive management team has a proven track record with a history of generating positive returns and value creation. Our experience as E&P operators was instrumental to our understanding of the opportunity created by in-basin sand production and supply in the
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words “may,” “assume,” “forecast,” “position,” “strategy,” “potential,” “continue,” “could,” “will,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, timing expectations and costs associated with the execution of process improvements at the Kermit facility; expected production volumes; the ultimate impact of the incident on Atlas’s future performance, operations and operating expenses; our plans and expectations regarding our newly authorized stock repurchase program; expectations regarding the leverage and dividend profile and expectations of Atlas; our business strategy, industry, future operations and profitability, expected capital expenditures and the impact of such expenditures on our performance, statements about our financial position, production, revenues and losses, our capital programs, management changes, current and potential future long-term contracts and our future business and financial performance.
Although forward-looking statements reflect our good faith beliefs at the time they are made, we caution you that these forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include but are not limited to: uncertainty regarding the ultimate cost and time needed to execute the desired process improvements at our production facilities; unexpected future capital expenditures; uncertainties as to whether the Hi-Crush Acquisition will achieve its anticipated benefits and projected synergies within the expected time period or at all; Atlas’s ability to integrate Hi-Crush Inc.’s operations in a successful manner and in the expected time period; unforeseen or unknown liabilities; unexpected future capital expenditures; our ability to successfully execute our stock repurchase program or implement future stock repurchase programs; commodity price volatility, including volatility stemming from the ongoing armed conflicts between
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Condensed Consolidated Statements of Income |
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(unaudited, in thousands, except per share data) |
||||||||||||||||
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Three Months Ended |
||||||||||||||
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|
|
|
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|
|
|
|
|
|
||||||||
Product sales |
|
$ |
145,347 |
|
|
$ |
128,210 |
|
|
$ |
113,432 |
|
|
$ |
114,773 |
|
Service sales |
|
|
159,087 |
|
|
|
159,308 |
|
|
|
79,235 |
|
|
|
42,843 |
|
Total sales |
|
|
304,434 |
|
|
|
287,518 |
|
|
|
192,667 |
|
|
|
157,616 |
|
Cost of sales (excluding depreciation, depletion and accretion expense) |
|
|
225,347 |
|
|
|
202,136 |
|
|
|
106,746 |
|
|
|
67,770 |
|
Depreciation, depletion and accretion expense |
|
|
26,069 |
|
|
|
25,027 |
|
|
|
17,175 |
|
|
|
10,221 |
|
Gross profit |
|
|
53,018 |
|
|
|
60,355 |
|
|
|
68,746 |
|
|
|
79,625 |
|
Selling, general and administrative expense (including stock and unit-based compensation expense of |
|
|
25,463 |
|
|
|
27,266 |
|
|
|
28,008 |
|
|
|
14,301 |
|
Amortization expense of acquired intangible assets |
|
|
3,744 |
|
|
|
3,768 |
|
|
|
1,061 |
|
|
|
— |
|
Loss on disposal of assets |
|
|
8,574 |
|
|
|
11,098 |
|
|
|
— |
|
|
|
— |
|
Insurance recovery (gain) |
|
|
— |
|
|
|
(10,000 |
) |
|
|
— |
|
|
|
— |
|
Operating income |
|
|
15,237 |
|
|
|
28,223 |
|
|
|
39,677 |
|
|
|
65,324 |
|
Interest (expense), net |
|
|
(11,193 |
) |
|
|
(10,458 |
) |
|
|
(4,978 |
) |
|
|
(1,496 |
) |
Other income |
|
|
289 |
|
|
|
138 |
|
|
|
23 |
|
|
|
136 |
|
Income before income taxes |
|
|
4,333 |
|
|
|
17,903 |
|
|
|
34,722 |
|
|
|
63,964 |
|
Income tax expense |
|
|
415 |
|
|
|
3,066 |
|
|
|
7,935 |
|
|
|
7,637 |
|
Net income |
|
$ |
3,918 |
|
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
56,327 |
|
Less: Net income attributable to redeemable noncontrolling interest |
|
|
|
|
|
|
|
|
26,887 |
|
||||||
Net income attributable to |
|
$ |
3,918 |
|
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
29,440 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
$ |
0.26 |
|
|
$ |
0.51 |
|
Diluted |
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
$ |
0.26 |
|
|
$ |
0.51 |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
109,883 |
|
|
|
111,064 |
|
|
|
102,931 |
|
|
|
57,237 |
|
Diluted |
|
|
111,078 |
|
|
|
112,023 |
|
|
|
103,822 |
|
|
|
57,928 |
|
|
||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||
(unaudited, in thousands) |
||||||||||||||||
|
|
Three Months Ended |
||||||||||||||
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|
|
|
|
|
|
|
||||||||
|
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|
|
|
|
|
|
|
||||||||
Operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
3,918 |
|
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
56,327 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and accretion expense |
|
|
26,972 |
|
|
|
25,886 |
|
|
|
18,007 |
|
|
|
10,746 |
|
Amortization of debt discount |
|
|
1,045 |
|
|
|
1,083 |
|
|
|
407 |
|
|
|
231 |
|
Amortization of deferred financing costs |
|
|
122 |
|
|
|
118 |
|
|
|
78 |
|
|
|
79 |
|
Amortization expense of acquired intangible assets |
|
|
3,744 |
|
|
|
3,768 |
|
|
|
1,061 |
|
|
|
— |
|
Loss on disposal of assets |
|
|
8,574 |
|
|
|
11,098 |
|
|
|
— |
|
|
|
— |
|
Stock and unit-based compensation |
|
|
6,289 |
|
|
|
5,466 |
|
|
|
4,206 |
|
|
|
1,414 |
|
Deferred income tax |
|
|
154 |
|
|
|
2,758 |
|
|
|
7,521 |
|
|
|
9,432 |
|
Other |
|
|
(906 |
) |
|
|
(744 |
) |
|
|
(5 |
) |
|
|
(42 |
) |
Changes in operating assets and liabilities: |
|
|
35,277 |
|
|
|
(3,414 |
) |
|
|
(18,500 |
) |
|
|
(22,781 |
) |
Net cash provided by operating activities |
|
|
85,189 |
|
|
|
60,856 |
|
|
|
39,562 |
|
|
|
55,406 |
|
|
|
|
|
|
|
|
|
|
||||||||
Investing activities: |
|
|
|
|
|
|
|
|
||||||||
Purchases of property, plant and equipment |
|
|
(86,276 |
) |
|
|
(115,790 |
) |
|
|
(95,486 |
) |
|
|
(98,858 |
) |
Hi-Crush acquisition, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(142,233 |
) |
|
|
— |
|
Proceeds from insurance recovery |
|
|
10,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(76,276 |
) |
|
|
(115,790 |
) |
|
|
(237,719 |
) |
|
|
(98,858 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Financing Activities: |
|
|
|
|
|
|
|
|
||||||||
Prepayment fee on 2021 Term Loan Credit
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,649 |
) |
Proceeds from borrowings |
|
|
(3,039 |
) |
|
|
3,039 |
|
|
|
198,500 |
|
|
|
— |
|
Principal payments on term loan borrowings |
|
|
(4,333 |
) |
|
|
(4,217 |
) |
|
|
(1,381 |
) |
|
|
— |
|
Issuance costs associated with debt financing |
|
|
(37 |
) |
|
|
(416 |
) |
|
|
(730 |
) |
|
|
(3,645 |
) |
Payments under finance leases |
|
|
(863 |
) |
|
|
(846 |
) |
|
|
(65 |
) |
|
|
(232 |
) |
Repayment of notes payable |
|
|
(1,456 |
) |
|
|
(855 |
) |
|
|
(216 |
) |
|
|
— |
|
Dividends and distributions |
|
|
(25,271 |
) |
|
|
(24,168 |
) |
|
|
(21,005 |
) |
|
|
(27,158 |
) |
Net cash provided by (used in) financing activities |
|
|
(34,999 |
) |
|
|
(27,463 |
) |
|
|
175,103 |
|
|
|
(33,684 |
) |
Net decrease in cash and cash equivalents |
|
|
(26,086 |
) |
|
|
(82,397 |
) |
|
|
(23,054 |
) |
|
|
(77,136 |
) |
Cash and cash equivalents, beginning of period |
|
|
104,723 |
|
|
|
187,120 |
|
|
|
210,174 |
|
|
|
341,674 |
|
Cash and cash equivalents, end of period |
|
$ |
78,637 |
|
|
$ |
104,723 |
|
|
$ |
187,120 |
|
|
$ |
264,538 |
|
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
|
|
|
As of |
|
|
As of |
||
|
|
|
|
|
|
|
||
|
|
|
(unaudited) |
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
$ |
78,637 |
|
|
$ |
210,174 |
Accounts receivable, including related parties |
|
|
|
179,924 |
|
|
|
71,170 |
Inventories, prepaid expenses and other current assets |
|
|
|
57,952 |
|
|
|
37,342 |
Total current assets |
|
|
|
316,513 |
|
|
|
318,686 |
Property, plant and equipment, net |
|
|
|
1,449,540 |
|
|
|
934,660 |
Right-of-use assets |
|
|
|
19,647 |
|
|
|
4,151 |
|
|
|
|
75,219 |
|
|
|
— |
Intangible assets |
|
|
|
109,281 |
|
|
|
1,767 |
Other long-term assets |
|
|
|
3,290 |
|
|
|
2,422 |
Total assets |
|
|
$ |
1,973,490 |
|
|
$ |
1,261,686 |
Liabilities and stockholders' equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable, including related parties |
|
|
|
125,005 |
|
|
|
61,159 |
Accrued liabilities and other current liabilities |
|
|
|
96,948 |
|
|
|
31,433 |
Current portion of long-term debt |
|
|
|
36,219 |
|
|
|
— |
Total current liabilities |
|
|
|
258,172 |
|
|
|
92,592 |
Long-term debt, net of discount and deferred financing costs |
|
|
|
439,043 |
|
|
|
172,820 |
Deferred tax liabilities |
|
|
|
207,182 |
|
|
|
121,529 |
Other long-term liabilities |
|
|
|
22,912 |
|
|
|
6,921 |
Total liabilities |
|
|
|
927,309 |
|
|
|
393,862 |
Total stockholders' and members' equity |
|
|
|
1,046,181 |
|
|
|
867,824 |
Total liabilities and stockholders’ equity |
|
|
$ |
1,973,490 |
|
|
$ |
1,261,686 |
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted EBITDA, to assess our operating performance on a consistent basis across periods by removing the effects of development activities, provide views on capital resources available to organically fund growth projects and, in the case of Adjusted Free Cash Flow, assess the financial performance of our assets and their ability to sustain dividends or reinvest to organically fund growth projects over the long term without regard to financing methods, capital structure, or historical cost basis.
These measures do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA and Adjusted Free Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures may differ from computations of similarly titled measures of other companies.
Non-GAAP Measure Definitions:
- We define Adjusted EBITDA as net income before depreciation, depletion and accretion, amortization expense of acquired intangible assets, interest expense, income tax expense, stock and unit-based compensation, loss on extinguishment of debt, loss on disposal of assets, insurance recovery (gain), unrealized commodity derivative gain (loss), other acquisition related costs, and other non-recurring costs. Management believes Adjusted EBITDA is useful because it allows management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period and against our peers without regard to financing method or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain prior period non-recurring costs of goods sold are now included as an add-back to adjusted EBITDA in order to conform to the current period presentation and to more accurately describe the Company’s operating performance and results period over period.
- We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total sales.
- We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital Expenditures. Management believes that Adjusted Free Cash Flow is useful to investors as it provides a measure of the ability of our business to generate cash.
- We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total sales.
- We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow divided by Adjusted EBITDA.
- We define Maintenance Capital Expenditures as capital expenditures excluding growth capital expenditures and reconstruction of previously incurred growth capital expenditures.
|
|||||||||||||
Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income |
|||||||||||||
(unaudited, in thousands) |
|||||||||||||
|
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
|
$ |
3,918 |
|
$ |
14,837 |
|
$ |
26,787 |
|
$ |
56,327 |
Depreciation, depletion and accretion expense |
|
|
|
26,972 |
|
|
25,886 |
|
|
18,007 |
|
|
10,746 |
Amortization expense of acquired intangible assets |
|
|
|
3,744 |
|
|
3,768 |
|
|
1,061 |
|
|
— |
Interest expense |
|
|
|
11,831 |
|
|
12,014 |
|
|
6,976 |
|
|
4,673 |
Income tax expense |
|
|
|
415 |
|
|
3,066 |
|
|
7,935 |
|
|
7,637 |
EBITDA |
|
|
$ |
46,880 |
|
$ |
59,571 |
|
$ |
60,766 |
|
$ |
79,383 |
Stock and unit-based compensation |
|
|
|
6,289 |
|
|
5,466 |
|
|
4,206 |
|
|
1,414 |
Loss on disposal of assets (2) |
|
|
|
8,574 |
|
|
11,098 |
|
|
— |
|
|
— |
Insurance recovery (gain)(3) |
|
|
|
— |
|
|
(10,000) |
|
|
— |
|
|
— |
Other non-recurring costs (4) |
|
|
|
6,918 |
|
|
7,049 |
|
|
368 |
|
|
3,281 |
Other acquisition related costs (1) |
|
|
|
2,390 |
|
|
5,888 |
|
|
10,203 |
|
|
— |
Adjusted EBITDA |
|
|
$ |
71,051 |
|
$ |
79,072 |
|
$ |
75,543 |
|
$ |
84,078 |
Maintenance Capital Expenditures (5) |
|
|
$ |
12,382 |
|
$ |
5,418 |
|
$ |
4,460 |
|
$ |
15,557 |
Adjusted Free Cash Flow |
|
|
$ |
58,669 |
|
$ |
73,654 |
|
$ |
71,083 |
|
$ |
68,521 |
|
|||||||||||||||||
Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities |
|||||||||||||||||
(unaudited, in thousands, except percentages) |
|||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
|
$ |
85,189 |
|
|
$ |
60,856 |
|
|
$ |
39,562 |
|
|
$ |
55,406 |
|
Current income tax expense (benefit)(5) |
|
|
|
261 |
|
|
|
308 |
|
|
|
414 |
|
|
|
(1,795 |
) |
Change in operating assets and liabilities |
|
|
|
(35,277 |
) |
|
|
3,414 |
|
|
|
18,500 |
|
|
|
22,781 |
|
Cash interest expense (5) |
|
|
|
10,664 |
|
|
|
10,813 |
|
|
|
6,491 |
|
|
|
4,363 |
|
Maintenance capital expenditures (5) |
|
|
|
(12,382 |
) |
|
|
(5,418 |
) |
|
|
(4,460 |
) |
|
|
(15,557 |
) |
Other non-recurring costs (4) |
|
|
|
6,918 |
|
|
|
7,049 |
|
|
|
368 |
|
|
|
3,281 |
|
Other acquisition related costs (1) |
|
|
|
2,390 |
|
|
|
5,888 |
|
|
|
10,203 |
|
|
|
— |
|
Insurance recovery (gain)(3) |
|
|
|
— |
|
|
|
(10,000 |
) |
|
|
— |
|
|
|
— |
|
Other |
|
|
|
906 |
|
|
|
744 |
|
|
|
5 |
|
|
|
42 |
|
Adjusted Free Cash Flow |
|
|
$ |
58,669 |
|
|
$ |
73,654 |
|
|
$ |
71,083 |
|
|
$ |
68,521 |
|
Adjusted EBITDA Margin |
|
|
|
23 |
% |
|
|
28 |
% |
|
|
39 |
% |
|
|
53 |
% |
Adjusted Free Cash Flow Margin |
|
|
|
19 |
% |
|
|
26 |
% |
|
|
37 |
% |
|
|
43 |
% |
Adjusted Free Cash Flow Conversion |
|
|
|
83 |
% |
|
|
93 |
% |
|
|
94 |
% |
|
|
81 |
% |
(1) |
Represents Hi-Crush transaction costs include fees paid to finance, legal, accounting and other advisors, employee retention and benefit costs, and other operational and corporate costs. |
(2) |
Represents loss on disposal of one of the Company's dredge mining assets at its Kermit facility and loss on disposal of assets as a result of the fire at one of the Kermit plants that caused damage to the physical condition of the Kermit asset group. |
(3) |
Represents insurance recovery (gain) deemed collectible and legally enforceable as of |
(4) |
Other non-recurring costs includes costs incurred during our Up-C simplification transaction, temporary loadout, and other infrequent and unusual costs. |
(5) |
A reconciliation of the adjustment of these items used to calculate Adjusted Free Cash Flow to the Consolidated Financial Statements is included below. |
|
|||||||||||||||||
Reconciliation of Maintenance Capital Expenditures to Purchase of Property, Plant and Equipment |
|||||||||||||||||
(unaudited, in thousands) |
|||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Maintenance Capital Expenditures, accrual basis reconciliation: |
|
|
|
|
|
|
|
|
|
||||||||
Purchases of property, plant and equipment |
|
|
$ |
86,276 |
|
|
$ |
115,790 |
|
|
$ |
95,486 |
|
|
$ |
98,858 |
|
Changes in operating assets and liabilities associated with investing activities (1) |
|
|
|
(5,389 |
) |
|
|
16,134 |
|
|
|
(2,575 |
) |
|
|
40,153 |
|
Less: Growth capital expenditures and reconstruction of previously incurred growth capital expenditures |
|
|
|
(68,505 |
) |
|
|
(126,506 |
) |
|
|
(88,451 |
) |
|
|
(123,454 |
) |
Maintenance Capital Expenditures, accrual basis |
|
|
$ |
12,382 |
|
|
$ |
5,418 |
|
|
$ |
4,460 |
|
|
$ |
15,557 |
|
(1) |
Positive working capital changes reflect capital expenditures in the current period that will be paid in a future period. Negative working capital changes reflect capital expenditures incurred in a prior period but paid during the period presented. |
|
|||||||||||||||||
Reconciliation of Current Income Tax Expense to Income Tax Expense |
|||||||||||||||||
(unaudited, in thousands) |
|||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Current tax expense reconciliation: |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
$ |
415 |
|
|
$ |
3,066 |
|
|
$ |
7,935 |
|
|
$ |
7,637 |
|
Less: deferred tax expense |
|
|
|
(154 |
) |
|
|
(2,758 |
) |
|
|
(7,521 |
) |
|
|
(9,432 |
) |
Current income tax expense (benefit) |
|
|
$ |
261 |
|
|
$ |
308 |
|
|
$ |
414 |
|
|
$ |
(1,795 |
) |
|
|||||||||||||||||
Cash Interest Expense to Income Expense, Net |
|||||||||||||||||
(unaudited, in thousands) |
|||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Cash interest expense reconciliation: |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
$ |
11,193 |
|
|
$ |
10,458 |
|
|
$ |
4,978 |
|
|
$ |
1,496 |
|
Less: Amortization of debt discount |
|
|
|
(1,045 |
) |
|
|
(1,083 |
) |
|
|
(407 |
) |
|
|
(231 |
) |
Less: Amortization of deferred financing costs |
|
|
|
(122 |
) |
|
|
(118 |
) |
|
|
(78 |
) |
|
|
(79 |
) |
Less: Interest income |
|
|
|
638 |
|
|
|
1,556 |
|
|
|
1,998 |
|
|
|
3,177 |
|
Cash interest expense |
|
|
$ |
10,664 |
|
|
$ |
10,813 |
|
|
$ |
6,491 |
|
|
$ |
4,363 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028196431/en/
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