National Energy Services Reunited Corp. Reports Third Quarter 2020 Financial Results
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National Energy Services Reunited Corp. Reports Third Quarter 2020 Financial Results

Wednesday, October 28, 2020 5:00 AM
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HOUSTON, TX / ACCESSWIRE / October 28, 2020 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR) (NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") and Asia Pacific regions, today reported its financial results for the quarter ended September 30, 2020. The Company posted the following results for the periods presented:

  • Revenue for the third quarter of 2020 is $218 million, growing 35% year-over-year and 7% over the sequential quarter
  • Free cash flow (a non-GAAP measure) for the third quarter of 2020 is $9 million*
  • Net Income for the third quarter of 2020 is $12 million, growing 11% over the sequential quarter
  • Adjusted Net Income (a non-GAAP measure) for the third quarter of 2020 is $14 million*
  • Adjusted EBITDA (a non-GAAP measure) is $56 million, an increase of 17% year-over-year and 8% over the sequential quarter*
  • Diluted Earnings per Share ("EPS") for the third quarter of 2020 is $0.13
  • Adjusted Diluted EPS (a non-GAAP measure) for the third quarter of 2020 is $0.16*
 
  Three Months Ended     Variance  
(in thousands except per share amounts and percentages)
 
September 30,
2020
    June 30, 2020    
September 30,
2019
    Sequential     Year-over- year  
 
                             
Revenue
  218,423     203,249     161,606       7 %     35 %
Net income
    11,666       10,536       11,110       11 %     5 %
Adjusted net income (non-GAAP)*
    14,165       12,342       16,195       15 %     (13 )%
Adjusted EBITDA (non-GAAP)*
    55,803       51,841       47,708       8 %     17 %
Diluted EPS
    0.13       0.12       0.13       8 %     - %
Adjusted Diluted EPS (non-GAAP)*
    0.16       0.14       0.19       14 %     (16 )%
Free cash flow (non-GAAP)*
    8,668       15,531       (12,530 )     (6,863 )     21,198  

*The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1, 2, 3, 4, 5 and 6 below for reconciliations of GAAP to non-GAAP financial measures.

Sherif Foda, Chairman of the Board and CEO of NESR, said, "We are incredibly blessed to have such talented employees who always manage to beat all records and continue to grow and deliver in contrast to the market despite the existence of a worldwide pandemic. We maintained our usual close contacts with our customers in the region and managed to achieve new milestones in several initiatives and contracts. We are honored to have our clients' trust and are very pleased to further consolidate our presence in the Sultanate of Oman, one of our key foundational countries, recognizing our full alignment with our primary customer enabling us to amplify our investment and long term goals. This is NESR's ESG strategy in action, reflecting clear commitment and social contributions to the countries where we operate."

Mr. Foda continued, "We concluded our acquisition of Sahara Petroleum Services Company S.A.E. (SAPESCO) during the quarter and managed to close the immediate transaction payments entirely with available cash from operations. We are already capitalizing on their qualifications in several countries and will be announcing further contract awards in the coming quarters."

Net Income Results

Net income for the third quarter of 2020 is $11.7 million. Net income for the third quarter of 2020, second quarter of 2020, and third quarter of 2019, includes amortization expenses of approximately $4.0 million, $3.9 million, and $4.0 million, respectively, associated with intangible assets acquired primarily in the 2018 acquisitions of our two initial operating subsidiaries, NPS Holdings Limited and Gulf Energy S.A.O.C. (together, the "subsidiaries"). Adjusted net income for the third quarter of 2020 is $14.2 million and includes adjustments totaling $2.5 million (collectively, "Total Charges and Credits") mainly related to nonrecurring transaction and integration costs associated with the acquisition of SAPESCO in Egypt. A complete list of the adjusting items and the associated reconciliation from GAAP has been provided in Table 1 below in the section entitled "Reconciliation of Net Income and Adjusted Net Income."

The Company reported $0.13 of diluted earnings per share ("EPS") for the third quarter of 2020. Adjusted for the impact of Total Charges and Credits, Adjusted Diluted EPS, a non-GAAP measure described in Table 1 below, for the third quarter of 2020 is $0.16.

Adjusted EBITDA Results

The Company produced Adjusted EBITDA of $55.8 million during the third quarter of 2020, growing 17% as compared to $47.7 million in the third quarter of 2019, and improving 8% as compared to $51.8 million in the second quarter of 2020. Third quarter 2020 Adjusted EBITDA includes adjustments for certain Total Charges and Credits (those not related to interest, taxes, and/or depreciation and amortization) of $2.5 million. The Company posted the following results for the periods presented.

(in thousands)
 
Quarter ended
September 30, 2020
   
Quarter ended
June 30, 2020
   
Quarter ended
September 30, 2019
 
Revenue
  218,423     203,249     161,606  
Adjusted EBITDA
  55,803     51,841     47,708  
 

Production Services Segment Results

The Production Services segment contributed $148.3 million to consolidated revenue for the third quarter of 2020, an improvement of 53% from $97.2 million in the third quarter of 2019 and 7% from $139.0 million in the second quarter of 2020. Segment Adjusted EBITDA, a non-GAAP measure, increased to $42.9 million from $40.5 million in the second quarter of 2020 and $34.2 million in the third quarter of 2019, an improvement of 6% and 25%, respectively. The Production Services segment posted the following results for the periods presented.

(in thousands)
 
Quarter ended
September 30, 2020
   
Quarter ended
June 30, 2020
   
Quarter ended
September 30, 2019
 
Revenue
  148,292     139,034     97,160  
Operating income
  21,425     20,217     20,447  
Adjusted EBITDA
  42,891     40,477     34,218  

Drilling and Evaluation Services Segment Results

The Drilling and Evaluation ("D&E") Services segment contributed $70.1 million to consolidated revenue for the third quarter of 2020, growing 9% as compared to both the sequential quarter and prior year quarter. Segment Adjusted EBITDA, a non-GAAP measure, totaled $16.5 million in the third quarter of 2020, growing 4% as compared to $15.8 million in the second quarter of 2020 and 1% as compared to $16.3 million in the third quarter of 2019.

The D&E Services segment posted the following results for the periods presented.

(in thousands)
 
Quarter ended
September 30, 2020
   
Quarter ended
June 30, 2020
   
Quarter ended
September 30, 2019
 
Revenue
  70,131     64,215     64,446  
Operating income
  7,377     8,334     9,183  
Adjusted EBITDA
  16,492     15,847     16,299  

Offsetting both the Production Services segment and D&E Services segment results were certain corporate costs, which are not allocated to segment operations.

Balance Sheet

Cash and cash equivalents are $50.5 million as of September 30, 2020, compared to $73.2 million as of December 31, 2019.

Total debt as of September 30, 2020 is $399.9 million with $80.1 million of such debt classified as short-term. Working capital totaled $154.9 million as of September 30, 2020. Free cash flow, a non-GAAP measure, for the third quarter of 2020 is $8.7 million, improving by $21.2 million as compared to the third quarter of 2019. Net Debt, which is the sum of our recorded Current installments of long-term debt, Short-term borrowings, and Long-term debt less Cash and cash equivalents, totaled $349.4 million as of September 30, 2020 as compared to $342.3 million as of June 30, 2020 and $330.6 million as of September 30, 2019. Net Debt has increased quarter-over-quarter and year-over-year to fund the SAPESCO acquisition and working capital growth. A reconciliation of the comparable GAAP measures to Net Debt is provided in Table 6 below, entitled "Reconciliation to Net Debt."

Conference Call Information

NESR will host a conference call on Wednesday, October 28, 2020, to discuss third quarter financial results. The call will begin at 8:00 AM Eastern Time.

Investors, analysts and members of the media interested in listening to the conference call are encouraged to participate by dialing in to the U.S. toll-free line at 1-877-407-0312 or the international line at 1-201-389-0899. A live, listen-only webcast will also be available under the "Investors" section of the Company's website at www.nesr.com. A replay of the conference call will be available after the event under the "Investors" section of the Company's website.

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 5,000 employees and representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact, including statements regarding the impact of the COVID-19 pandemic and the Company's response to COVID-19, may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, completion and integration of acquisitions, including the SAPESCO acquisition, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, particularly during extended periods of low oil and gas prices, political disturbances, war, terrorist acts, public health crises and threats, including risks from the coronavirus COVID-19 outbreak, ongoing actions taken by businesses and governments and resulting significant disruption in international economies, international financial and oil markets; international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").

You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

The preliminary financial results for the Company's third quarter ended September 30, 2020 included in this press release represent the most current information available to management. The Company's actual results when disclosed in its Periodic Report on Form 6-K for the quarter ended September 30, 2020 may differ from these preliminary results as a result of the completion of the Company's financial statement closing procedures, final adjustments, completion of the independent registered public accounting firm's review procedures, and other developments that may arise between now and the disclosure of the final results.

 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In US$ thousands, except share data)

 
  September 30, 2020     December 31, 2019  
 
           
Assets
           
Current assets
           
Cash and cash equivalents
  50,487     73,201  
Accounts receivable, net
    128,719       98,799  
Unbilled revenue
    155,935       76,347  
Service inventories, net
    94,415       78,841  
Prepaid assets
    8,267       9,590  
Retention withholdings
    27,089       40,970  
Other receivables
    19,381       14,019  
Other current assets
    5,522       11,442  
Total current assets
    489,815       403,209  
Non-current assets
               
Property, plant and equipment, net
    458,505       419,307  
Intangible assets, net
    115,198       122,714  
Goodwill
    596,857       574,764  
Other assets
    3,069       2,370  
Total assets
  1,663,444     1,522,364  
 
               
Liabilities and equity
               
Liabilities
               
Accounts payable
  147,268     65,704  
Accrued expenses
    51,591       69,137  
Current installments of long-term debt
    43,750       15,000  
Short-term borrowings
    36,392       37,963  
Income taxes payable
    6,809       7,542  
Other taxes payable
    11,466       7,189  
Other current liabilities
    37,685       25,601  
Total current liabilities
    334,961       228,136  
 
               
Long-term debt
    319,738       330,564  
Deferred tax liabilities
    23,691       26,217  
Employee benefit liabilities
    19,438       16,745  
Other liabilities
    39,645       34,230  
Total liabilities
    737,473       635,892  
 
               
Equity
               
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at September 30, 2020 and December 31, 2019, respectively
    -       -  
Common stock, no par value; unlimited shares authorized; 87,777,553 and 87,187,289 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
    801,545       801,545  
Additional paid in capital
    23,076       17,237  
Retained earnings
    101,230       67,661  
Accumulated other comprehensive income
    64       29  
Total shareholders' equity
    925,915       886,472  
Non-controlling interests
    56       -  
Total equity
    925,971       886,472  
Total liabilities and equity
  1,663,444     1,522,364  
 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In US$ thousands, except share data and per share amounts)

 
  Quarter ended     Year-to-date period ended  
Description
  September 30,
2020
    September 30,
2019
    September 30,
2020
    September 30,
2019
 
 
                       
Revenues
  218,423     161,606     620,971     473,209  
Cost of services
    (177,953 )     (121,326 )     (500,566 )     (352,716 )
Gross profit
    40,470       40,280       120,405       120,493  
Selling, general and administrative expenses
    (17,449 )     (16,485 )     (53,190 )     (46,592 )
Amortization
    (4,034 )     (4,033 )     (11,855 )     (12,036 )
Operating income
    18,987       19,762       55,360       61,865  
Interest expense, net
    (3,793 )     (5,011 )     (12,468 )     (14,691 )
Other income / (expense), net
    37       (130 )     (383 )     (629 )
Income before income tax
    15,231       14,621       42,509       46,545  
Income tax expense
    (3,565 )     (3,511 )     (8,940 )     (10,905 )
Net income
    11,666       11,110       33,569       35,640  
Net income / (loss) attributable to non-controlling interests
    -       -       -       -  
Net income attributable to shareholders
  11,666     11,110     33,569     35,640  
 
                               
Weighted average shares outstanding:
                               
Basic
    89,876,456       87,024,655       88,452,027       86,938,883  
Diluted
    89,876,456       87,024,655       88,452,027       86,938,883  
 
                               
Net earnings per share:
                               
Basic
  0.13     0.13     0.38     0.40  
Diluted
  0.13     0.13     0.38     0.40  
 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In US$ thousands)

 
  Year-to-date
period ended
September 30, 2020
    Year-to-date
period ended
September 30, 2019
 
 
           
Cash flows from operating activities:
           
Net income
  33,569     35,640  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    91,783       59,728  
Share-based compensation expense
    5,842       4,057  
Loss (Gain) on disposal of assets
    688       (399 )
Non-cash interest expense
    (118 )     1,361  
Deferred tax expense (benefit)
    (2,526 )     (1,733 )
Allowance for (reversal of) doubtful receivables
    (97 )     920  
Provision for obsolete service inventories
    821       932  
Other operating activities, net
    (184 )     (100 )
Changes in operating assets and liabilities:
               
(Increase) in accounts receivable
    (13,223 )     (46,523 )
(Increase) in inventories
    (10,755 )     (15,123 )
Decrease (increase) in prepaid assets
    2,002       (3,825 )
(Increase) in other current assets
    (57,400 )     (5,537 )
(Increase) decrease in other long-term assets and liabilities
    (4,025 )     5,403  
Increase in accounts payable and accrued expenses
    40,970       23,971  
(Decrease) in other current liabilities
    (1,293 )     (13,482 )
Net cash provided by operating activities
    86,054       45,290  
 
               
Cash flows from investing activities:
               
Capital expenditures
    (75,448 )     (90,164 )
Proceeds from disposal of assets
    1,490       1,125  
Acquisition of business, net of cash acquired (Note 5)
    (11,260 )     -  
Other investing activities
    (628 )     (932 )
Net cash used in investing activities
    (85,846)       (89,971)  
 
               
Cash flows from financing activities:
               
Proceeds from long-term debt
    15,000       365,000  
Repayments of long-term debt
    (18,472 )     (285,048 )
Net change in overdraft facilities
    -       (7,050 )
Proceeds from short-term borrowings
    14,928       39,941  
Repayments of short-term borrowings
    (15,829 )     (44,250 )
Payments on capital leases
    (15,679 )     -  
Payments on seller-provided financing for capital expenditures
    (2,905 )     -  
Other financing activities, net
    -       (5,703 )
Net cash (used in) provided by financing activities
    (22,957)       62,890  
 
               
Effect of exchange rate changes on cash
    35       (19 )
Net (decrease) increase in cash
    (22,714)       18,190  
Cash and cash equivalents, beginning of period
    73,201       24,892  
Cash and cash equivalents, end of period
  50,487     43,082  
 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

(In US$ thousands except per share amounts)

The Company uses and presents certain key non-GAAP financial measures to evaluate its business and trends, measure performance, prepare financial projections and make strategic decisions. Included in this release are discussions of earnings before interest, income tax and depreciation and amortization adjusted for certain non-recurring and non-core expenses ("Adjusted EBITDA"), net income and diluted earnings per share ("EPS") adjusted for certain non-recurring and non-core expenses ("Adjusted Net Income" and "Adjusted Diluted EPS," respectively), as well as a reconciliation of these non-GAAP measures to operating income, net income, and diluted EPS, respectively, in accordance with GAAP. The Company also discusses the non-GAAP balance sheet measure of the sum of our recorded current installments of long-term debt, short-term borrowings, and long-term debt less cash and cash equivalents ("Net Debt") in this release and provides a reconciliation to the GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt to Net Debt.

The Company believes that the presentation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS provides useful information to investors in assessing its financial performance and results of operations as the Company's board of directors, management and investors use Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS to compare the Company's operating performance on a consistent basis across periods by removing the effects of changes in capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), items that do not impact the ongoing operations (transaction, integration, and startup costs) and items outside the control of its management team. Similarly, Net Debt is used by management as a liquidity measure used to illustrate the Company's debt level absent variability in cash and cash equivalents, and the Company believes that the presentation of Net Debt provides useful information to investors in assessing its financial leverage. Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS should not be considered as an alternative to operating income, net income, or diluted EPS, respectively, the most directly comparable GAAP financial measures. Net Debt also should not be considered as an alternative to GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt. Finally, Free Cash Flow is used by management as a liquidity measure to illustrate the Company's ability to produce cash that is available to be distributed in a discretionary manner, after excluding investments in capital assets. Free Cash Flow should not be considered as an alternative to Net cash provided by (used in) operations or Net cash provided by (used in) investing activities, respectively, the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. You should not consider non-GAAP measures in isolation or as a substitute for an analysis of the Company's results as reported under GAAP.

Information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments is focused on the timing of when the services are performed during a well's lifecycle. Production Services are services performed during the production stage of a well's lifecycle. Drilling and Evaluation Services are services performed during the pre-production stages of a well's lifecycle. The Company believes that the presentation of Segment EBITDA provides useful information to investors in assessing its financial performance and results of operations.

Table 1 - Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS

 
 
Quarter ended
September 30, 2020
   
Quarter ended
June 30, 2020
   
Quarter ended
September 30, 2019
 
 
 
Net
Income
   
Diluted
EPS
    Net Income    
Diluted
EPS
    Net Income    
Diluted
EPS
 
 
                                   
Net Income
  11,666     0.13     10,536     0.12     11,110     0.13  
Add Charges and Credits:
                                               
Transaction and other costs
    2,499       0.03       1,806       0.02       5,085       0.06  
Total Charges and Credits(1)
    2,499       0.03       1,806       0.02       5,085       0.06  
Total Adjusted
  14,165     0.16     12,342     0.14     16,195     0.19  
 

(1)

In the third quarter of 2020, Total Charges and Credits included $2.5 million mainly related to nonrecurring transaction and integration costs associated with the acquisition of SAPESCO in Egypt. In the second quarter of 2020, Total Charges and Credits included $1.8 million mainly related to nonrecurring transaction and integration costs associated with the acquisition of SAPESCO in Egypt. Similarly, in the third quarter of 2019, Total Charges and Credits included $5.1 million in costs related to integration and restructuring costs, exceptional interest charges, and other discrete provisions.

Table 2 - Reconciliation of Net Income to Adjusted EBITDA

 
 
Quarter ended
September 30, 2020
   
Quarter ended
June 30, 2020
   
Quarter ended
September 30, 2019
 
 
                 
Net Income
  11,666     10,536     11,110  
Add:
                       
Income Taxes
    3,565       2,848       3,511  
Interest Expense, net
    3,793       4,165       5,011  
Depreciation and Amortization
    34,280       32,486       23,196  
Charges and Credits impacting Adjusted EBITDA(2)
    2,499       1,806       4,880  
Total Adjusted EBITDA
  55,803     51,841     47,708  
 

(2)

Charges and Credits impacting Adjusted EBITDA are described in Table 1 above.

 

Table 3 - Reconciliation of Segment EBITDA to Adjusted EBITDA

 
  Quarter ended
September 30, 2020
    Quarter ended
June 30, 2020
    Quarter ended
September 30, 2019
 
 
  EBITDA     Charges and Credits impacting Adjusted EBITDA     Adjusted EBITDA     EBITDA     Charges and Credits impacting Adjusted EBITDA     Adjusted EBITDA     EBITDA     Charges and Credits impacting Adjusted EBITDA     Adjusted EBITDA  
Production Services
  41,705     1,186     42,891     39,572     905     40,477     32,581     1,637     34,218  
Drilling & Evaluation
    15,538       954       16,492       15,631       216       15,847       15,239       1,060       16,299  
Unallocated
    (3,939 )     359       (3,580 )     (5,168 )     685       (4,483 )     (4,992 )     2,183       (2,809 )
Total
  53,304     2,499     55,803     50,035     1,806     51,841     42,828     4,880     47,708  

Table 4 - Reconciliation of Segment EBITDA to Segment Operating Income

 
  Quarter ended September 30, 2020     Quarter ended June 30, 2020     Quarter ended September 30, 2019  
Production Services:
                 
Segment EBITDA
  41,705     39,572     32,581  
Depreciation and amort.
    (20,222 )     (19,637 )     (12,322 )
Other (income)/expense, net
    (58 )     282       188  
Segment Operating Income
    21,425       20,217       20,447  
Drilling and Evaluation Services:
                       
Segment EBITDA
    15,538       15,631       15,239  
Depreciation and amort.
    (8,153 )     (7,318 )     (5,980 )
Other (income)/expense, net
    (8 )     21       (76 )
Segment Operating Income
    7,377       8,334       9,183  
Unallocated:
                       
Segment EBITDA
    (3,939 )     (5,168 )     (4,992 )
Share-based compensation
    (2,082 )     (2,125 )     (1,944 )
Depreciation and amort.
    (3,823 )     (3,406 )     (2,950 )
Other (income)/expense, net
    29       6 )     18  
Unallocated Operating Income
    (9,815 )     (10,693 )     (9,868 )
Total Operating Income
  18,987     17,858     19,762  

Table 5 - Reconciliation of Net cash provided by (used in) operating activities to Free Cash Flow

 
  Quarter Ended  
 
  September 30, 2020     June 30, 2020     September 30, 2019  
 
                 
Net cash provided by (used in) operating activities
  33,455     42,650     (21,118 )
Less:
                       
Capital expenditures
    (24,787 )     (27,119 )     (33,648 )
Free cash flow
  8,668     15,531     (12,530 )

Table 6 - Reconciliation to Net Debt

 
  September 30, 2020     June 30, 2020     September 30, 2019  
 
                 
Current installments of long-term debt
  43,750     46,372     7,500  
Short-term borrowings
    36,392       39,781       28,261  
Long-term debt
    319,738       335,457       337,885  
Less:
                       
Cash and cash equivalents
    50,487       79,317       43,082  
Net Debt
  349,393     342,293     330,564  

For inquiries regarding NESR, please contact:

Christopher L. Boone
National Energy Services Reunited Corp.
832-925-3777
[email protected]

SOURCE: National Energy Services Reunited Corp via EQS Newswire

National Energy Services Reunited Corp
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