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National Energy Services Reunited Corp. Reports Second Quarter 2021 Financial Results

Wednesday, 04 August 2021 05:00 AM

National Energy Services Reunited Corp

Topic:
Earnings

HOUSTON, TX / ACCESSWIRE / August 4, 2021 / 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 June 30, 2021. The Company posted the following results for the periods presented:

  • Revenue for the second quarter of 2021 is $235 million, growing 16% year-over-year and 11% over the sequential quarter
  • Free cash flow (a non-GAAP measure) for the second quarter of 2021 is $12 million*
  • Net Income for the second quarter of 2021 is $8 million
  • Adjusted Net Income (a non-GAAP measure) for the second quarter of 2021 is $13 million*
  • Adjusted EBITDA (a non-GAAP measure) is $54 million, an increase of 7% over the sequential quarter and 3% year-over-year *
  • Diluted Earnings per Share (EPS) for the second quarter of 2021 is $0.08
  • Adjusted Diluted EPS (a non-GAAP measure), which includes $0.06 per share of Charges and Credits, for the second quarter of 2021 is $0.14*

 
 Three Months Ended  Variance 
(in thousands except per share amounts and percentages)
 
June 30,
2021
  March 31, 2021  
June 30,
2020
  Sequential  Year-over- year 
                     
Revenue
 234,927  212,426  203,249   11%  16%
Net income
  7,821   11,472   10,514   (32)%  (26)%
Adjusted net income (non-GAAP)*
  12,817   13,677   12,342   (6)%  4%
Adjusted EBITDA (non-GAAP)*
  53,607   50,221   51,841   7%  3%
Diluted EPS
  0.08   0.13   0.12   (38)%  (33)%
Adjusted Diluted EPS (non-GAAP)*
  0.14   0.15   0.14   (7)%  -%
Free cash flow (non-GAAP)*
  11,663   35,240   15,948  (23,577)  (4,285) 

*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, "The second quarter was another milestone in which we continued to outpace market growth and prepared for the long international upcycle. We are very proud to have published our inaugural ESG report (https://www.nesr.com/assets/NESR-2020-ESG-Report.pdf), which highlights our core values and demonstrates our strength as the true National Champion of MENA, with clear, positive impact to the communities and environments where we operate. We always strive to play a significant role in enabling our industry to continue to be the most reliable provider of energy to the world in a sustainable and responsible fashion, and I am excited for the opportunities our flagship water projects and newly formed ESG IMPACT Segment provide."

Mr. Foda continued, "Separately, NESR successfully integrated the operations of the three oilfield service lines that we acquired from Action Energy Company W.L.L. ("Action") in early May 2021. The initial payment to Action was substantially funded by available cash from operations, and the transaction further solidifies our rapidly growing presence in Kuwait."

Net Income Results

The Company had net income for the second quarter of 2021 totaling $7.8 million. Adjusted net income for the second quarter of 2021 is $12.8 million and includes adjustments totaling $5.0 million (collectively, "Total Charges and Credits") mainly related to transaction costs related to mergers and acquisitions and restructuring activities. 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 $0.08 of diluted earnings per share ("EPS") for the second quarter of 2021. Adjusted for the impact of Total Charges and Credits, Adjusted Diluted EPS, a non-GAAP measure described in Table 1 below, for the second quarter of 2021 is $0.14.

Adjusted EBITDA Results

The Company produced Adjusted EBITDA of $53.6 million during the second quarter of 2021, growing 7% as compared to $50.2 million in the first quarter of 2021, and improving 3% as compared to $51.8 million in the second quarter of 2020. Second quarter 2021 Adjusted EBITDA includes adjustments for certain Total Charges and Credits (those not related to interest, taxes, and/or depreciation and amortization) of $5.0 million. The Company posted the following results for the periods presented.

(in thousands)
 Quarter ended June 30, 2021  Quarter ended March 31, 2021  Quarter ended June 30, 2020 
Revenue
 234,927  212,426  203,249 
Adjusted EBITDA
 53,607  50,221  51,841 
             

Production Services Segment Results

The Production Services segment contributed $152.7 million to consolidated revenue for the second quarter of 2021, an improvement of 12% from $136.8 million in the first quarter of 2021, mainly due to increased hydraulic fracturing activities, and 10% from $139.0 million in the second quarter of 2020. Segment Adjusted EBITDA, a non-GAAP measure, increased to $40.8 million from $36.3 million in the first quarter of 2021, an improvement of 12%, and from $40.5 million in the second quarter of 2020, an increase of 1%. Segment Adjusted EBITDA margins were substantially flat on a sequential quarter basis. The Production Services segment posted the following results for the periods presented.

(in thousands)
 
Quarter 
ended June 
30, 2021
  
Quarter 
ended March 
31, 2021
  
Quarter 
ended June 
30, 2020
 
Revenue
 152,670  136,767  139,034 
Operating income
 18,015  14,182  20,217 
Adjusted EBITDA
 40,764  36,298  40,477 
             

Drilling and Evaluation Services Segment Results

The Drilling and Evaluation ("D&E") Services segment contributed $82.3 million to consolidated revenue for the second quarter of 2021. Segment Adjusted EBITDA, a non-GAAP measure, totaled $17.5 million in the second quarter of 2021, improving 10% from $15.8 million in the second quarter of 2020. Segment EBITDA margins declined on sequential quarter basis as a result of product mix between the drilling and evaluation businesses.

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

(in thousands)
 
Quarter 
ended June 
30, 2021
  
Quarter 
ended March 
31, 2021
  
Quarter 
ended June 
30, 2020
 
Revenue
 82,257  75,659  64,215 
Operating income
 8,558  9,713  8,334 
Adjusted EBITDA
 17,505  17,966  15,847 

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 $66.1 million as of June 30, 2021, compared to $75.0 million as of December 31, 2020.

Total debt as of June 30, 2021 is $401.3 million with $113.8 million of such debt classified as short-term. Working capital for the Company totaled $131.6 million as of June 30, 2021. Free cash flow, a non-GAAP measure, for the second quarter of 2021 is $11.7 million. Net Debt (a non-GAAP measure), 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 $335.2 million as of June 30, 2021 as compared to $323.5 million as of December 31, 2020 and $342.3 million as of June 30, 2020. Net Debt has increased since year-end primarily due to additional borrowing capacity provided by the Company's lenders to fund growth in certain countries. A reconciliation of the comparable GAAP measures to Net Debt is provided in Table 4 below, entitled "Reconciliation to Net Debt."

Conference Call Information

NESR will host a conference call on Wednesday, August 4, 2021, to discuss second 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, 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, 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 second quarter ended June 30, 2021 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 June 30, 2021 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)

  June 30,  December 31, 

 
 2021  2020 
Assets        
Current assets        
Cash and cash equivalents
 66,074  75,012 
Accounts receivable, net
  116,483   116,835 
Unbilled revenue
  117,909   158,457 
Service inventories
  103,305   94,263 
Prepaid assets
  13,238   11,480 
Retention withholdings
  46,384   36,773 
Other receivables
  17,483   18,454 
Other current assets
  3,695   3,943 
Total current assets
  484,571   515,217 
Non-current assets
        
Property, plant and equipment, net
  452,453   437,743 
Intangible assets, net
  131,424   110,376 
Goodwill
  628,752   620,921 
Other assets
  7,853   2,797 
Total assets
 1,705,053  1,687,054 
         
Liabilities and equity
        
Liabilities
        
Accounts payable
  138,914   144,614 
Accrued expenses
  39,977   73,783 
Current installments of long-term debt
  54,077   47,500 
Short-term borrowings
  59,709   42,360 
Income taxes payable
  5,628   9,420 
Other taxes payable
  5,095   11,289 
Other current liabilities
  49,542   30,400 
Total current liabilities
  352,942   359,366 

 
        
Long-term debt
  287,483   308,614 
Deferred tax liabilities
  19,447   21,070 
Employee benefit liabilities
  23,520   21,515 
Other liabilities
  37,515   32,071 
Total liabilities
  720,907   742,636 

 
        
Commitments and contingencies
  -   - 

 
        
Equity
        
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at June 30, 2021 and December 31, 2020, respectively
  -   - 
Common stock and additional paid in capital, no par value; unlimited shares authorized; 91,119,218 and 87,777,553 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively
  851,548   831,146 
Retained earnings
  132,509   113,216 
Accumulated other comprehensive income
  97   64 
Total shareholders' equity
  984,154   944,426 
Non-controlling interests
  (8)  (8)
Total equity
  984,146   944,418 
Total liabilities and equity
 1,705,053  1,687,054 
         

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
 June 30, 2021  June 30, 2020  June 30, 2021  June 30, 2020 
                 
Revenues
 234,927  203,249  447,353  402,548 
Cost of services
  (193,931)  (164,343)  (368,242)  (322,613)
Gross profit
  40,996   38,906   79,111   79,935 
Selling, general and administrative expenses
  (22,379)  (17,114)  (40,525)  (35,741)
Amortization
  (4,499)  (3,934)  (8,507)  (7,821)
Operating income
  14,118   17,858   30,079   36,373 
Interest expense, net
  (3,234)  (4,165)  (6,397)  (8,675)
Gain/(loss) on Private Warrant Liability
  -   (22)  -   558 
Other income / (expense), net
  (655)  (309)  (372)  (420)
Income before income tax
  10,229   13,362   23,310   27,836 
Income tax expense
  (2,408)  (2,848)  (4,017)  (5,375)
Net income
  7,821   10,514   19,293   22,461 
Net income / (loss) attributable to non-controlling interests
  -   -   -   - 
Net income attributable to shareholders
 7,821  10,514  19,293  22,461 
                 
Weighted average shares outstanding:
                
Basic
  91,124,273   88,232,694   90,788,083   87,731,986 
Diluted
  94,636,374   88,232,694   93,368,023   87,731,986 
                 
Net earnings per share (Note 16):
                
Basic
 0.09  0.12  0.21  0.25 
Diluted
 0.08  0.12  0.21  0.25 
                 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US$ thousands)


 
 Year-to-date period ended  
Quarter
ended
 

 
 June 30, 2021  June 30, 2020  June 30, 2021 
Cash flows from operating activities:            
Net income
 19,293  22,461  7,821 
Adjustments to reconcile net income to net cash provided by operating activities:
            
Depreciation and amortization
  62,320   59,585   32,109 
Share-based compensation expense
  4,600   3,760   3,039 
Loss (Gain) on disposal of assets
  367   240   767 
Non-cash interest (income) expense
  (51)  (125)  11 
Deferred tax expense (benefit)
  (1,623)  (2,126)  (729)
Allowance for (reversal of) doubtful receivables
  286   (26)  207 
Provision for obsolete service inventories
  -   614   - 
Loss (Gain) on Private Warrant liability
  -   (558)  - 
Other operating activities, net
  240   219   (96)
Changes in operating assets and liabilities:
            
(Increase) decrease in accounts receivable
  9,308   1,887   20,061 
(Increase) decrease in Unbilled revenue
  41,900   (44,517)  2,308 
(Increase) decrease in Retention withholdings
  (9,611)  (8,701)  (15,458)
(Increase) decrease in inventories
  (6,288)  (7,883)  (4,656)
(Increase) decrease in prepaid expenses
  (1,449)  857   671 
(Increase) decrease in other current assets
  3,411   6,685   4,407 
(Increase) decrease in other long-term assets and liabilities
  (516)  (2,140)  654 
Increase (decrease) in accounts payable and accrued expenses
  (32,038)  23,185   (2,610)
Increase (decrease) in other current liabilities
  (10,678)  (818)  (15,517)
Net cash provided by operating activities
  79,471   52,599   32,989 

 
            
Cash flows from investing activities:
            
Capital expenditures
  (32,568)  (50,661)  (21,326)
Proceeds from disposal of assets
  784   1,277   132 
Acquisition of business, net of cash acquired
  (36,923)  3,740   (36,385)
Other investing activities
  (3,104)  (570)  (1,104)
Net cash used in investing activities
  (71,811)  (46,214)  (58,683)

 
            
Cash flows from financing activities:
            
Proceeds from long-term debt
  -   15,000   - 
Repayments of long-term debt
  (15,000)  -   (7,500)
Proceeds from short-term borrowings
  58,394   3,999   39,240 
Repayments of short-term borrowings
  (40,938)  (7,131)  (21,540)
Payments on capital leases
  (10,117)  (11,180)  (3,772)
Payments on seller-provided financing for capital expenditures
  (8,830)  (992)  (3,787)
Other financing activities, net
  (141)  -   (141)
Net cash provided by (used in) financing activities
  (16,632)  (304)  2,500 

 
            
Effect of exchange rate changes on cash
  34   35   - 
Net increase (decrease) in cash
  (8,938)  6,116   (23,194)
Cash and cash equivalents, beginning of period
  75,012   73,201   89,268 
Cash and cash equivalents, end of period
 66,074  79,317  66,074 
             

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
June 30, 2021
  
Quarter ended
March 31, 2021
  
Quarter ended
June 30, 2020
 

 
 
Net
Income
  
Diluted 
EPS
  Net 
Income
  
Diluted 
EPS
  Net 
Income
  
Diluted
EPS
 
                         
Net Income
 7,821  0.08  11,472  0.13  10,514  0.12 
Add Charges and Credits:
                        
Transaction and other costs
  4,996   0.06   2,205   0.02   1,828   0.02 
Total Charges and Credits(1)
  4,996   0.06   2,205   0.02   1,828   0.02 
Total Adjusted Net Income
 12,817  0.14  13,677  0.15  12,342  0.14 
                         

(1) In the second quarter of 2021, Total Charges and Credits included $5.0 million mainly related to transaction costs related to mergers and acquisitions and restructuring activities. In the first quarter of 2021, Total Charges and Credits included $2.2 million mainly related to transaction costs related to mergers and acquisitions and restructuring activities. Similarly, in the second quarter of 2020, Total Charges and Credits included $1.8 million mainly related to nonrecurring transaction costs associated with the acquisition of SAPESCO in Egypt.

Table 2 - Reconciliation of Net Income to Adjusted EBITDA


 
 
Quarter ended
June 30, 2021
  
Quarter ended
March 31, 2021
  
Quarter ended
June 30, 2020
 
             
Net Income
 7,821  11,472  10,514 
Add:
            
Income Taxes
  2,408   1,609   2,848 
Interest Expense, net
  3,234   3,163   4,165 
Depreciation and Amortization
  35,148   31,772   32,486 
Charges and Credits impacting Adjusted EBITDA(2)
  4,996   2,205   1,828 
Total Adjusted EBITDA
 53,607  50,221  51,841 
             

(2) Charges and Credits impacting Adjusted EBITDA are described in Table 1 above. Charges and Credits impacting Adjusted EBITDA exclude items related to interest, income tax and depreciation and amortization.

Table 3 - Reconciliation of Segment EBITDA to Adjusted EBITDA


 
 Quarter ended
June 30, 2021
  Quarter ended
March 31, 2021
  Quarter ended
June 30, 2020
 

 
 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
 39,382  1,382  40,764  34,617  1,681  36,298  39,572  905  40,477 
Drilling & Evaluation
  16,878   627   17,505   17,966   -   17,966   15,631   216   15,847 
Unallocated
  (7,649)  2,987   (4,662)  (4,567)  524   (4,043)  (5,190)  707   (4,483)
Total
 48,611  4,996  53,607  48,016  2,205  50,221  50,013  1,828  51,841 
                                     

Table 4 - Reconciliation of Segment EBITDA to Segment Operating Income


 
 Quarter ended June 30, 2021  Quarter ended March 31, 2021  Quarter ended June 30, 2020 
Production Services:            
Segment EBITDA
 39,382  34,617  39,572 
Depreciation and amort.
  (21,598)  (20,539)  (19,637)
Other (income)/expense, net
  231   104   282 
Segment Operating Income
  18,015   14,182   20,217 
Drilling and Evaluation Services:
            
Segment EBITDA
  16,878   17,966   15,631 
Depreciation and amort.
  (8,424)  (7,937)  (7,318)
Other (income)/expense, net
  104   (316)  21 
Segment Operating Income
  8,558   9,713   8,334 
Unallocated:
            
Segment EBITDA
  (7,649)  (4,567)  (5,168)
Share-based compensation
  (3,039)  (1,561)  (2,125)
Depreciation and amort.
  (2,087)  (1,735)  (3,406)
Other (income)/expense, net
  320   (71)  6 
Segment Operating Income
  (12,455)  (7,934)  (10,693)
Total Operating Income
 14,118  15,961  17,858 
             

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


 
 Quarter Ended 

 
 June 30, 2021  March 31, 2021  June 30, 2020 
             
Net cash provided by (used in) operating activities
 32,989  46,482  42,650 
Less:
            
Capital expenditures
  (21,326)  (11,242)  (26,702)
Free cash flow
 11,663  35,240  15,948 

Table 6 - Reconciliation to Net Debt


 
 June 30, 2021  March 31, 2021  June 30, 2020 
             
Current installments of long-term debt
 54,077  50,327  46,372 
Short-term borrowings
  59,709   42,110   39,781 
Long-term debt
  287,483   298,480   335,457 
Less:
            
Cash and cash equivalents
  (66,074)  (89,268)  (79,317)
Net Debt
 335,195  301,649  342,293 
             

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.

Topic:
Earnings
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