Chronicle Journal: Finance

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

HOUSTON, TX / ACCESSWIRE / February 24, 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 December 31, 2020. The Company posted the following results for the periods presented:

  • Revenue for the full year 2020 is $834 million, growing 27% year-over-year
  • Revenue for the fourth quarter of 2020 is $213 million, growing 15% year-over-year and decreased 2% quarter-over-quarte
  • Free cash flow (a non-GAAP measure) for the fourth quarter of 2020 is $33 million, improving $25 million over the sequential quarter and $7 million year-over-year*
  • Net Income for the fourth quarter of 2020 is $17 million, growing 344% year-over-year and 42% over the sequential quarter
  • Adjusted Net Income (a non-GAAP measure) for the fourth quarter of 2020 is $18 million*
  • Adjusted EBITDA (a non-GAAP measure) is $55 million, an increase of 6% year-over-year*
  • Diluted Earnings per Share ("EPS") for the fourth quarter of 2020 is $0.18
  • Adjusted Diluted EPS (a non-GAAP measure) for the fourth quarter of 2020 is $0.20*
  Three Months Ended  Variance 
(in thousands except per share amounts and percentages) December 31,2020  September 30,2020  December 31,2019  Sequential  Year-over-year
                
Revenue $213,175  $218,423  $185,176   (2)%  15%
Net income  16,518   11,666   3,724   42%  344%
Adjusted net income (non-GAAP)*  18,454   14,165   18,948   30%  (3)%
Adjusted EBITDA (non-GAAP)*  54,615   55,803   51,749   (2)%  6%
Diluted EPS  0.18   0.13   0.04   38%  350%
Adjusted Diluted EPS (non-GAAP)*  0.20   0.16   0.21   25%  (5)%
Free cash flow (non-GAAP)*  33,290   8,668   26,027   24,622   7,263 

*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, "NESR delivered another solid quarter despite ongoing regional and global turbulence from the coronavirus pandemic. Commercially, our team's focus on free cash flow and strengthening our balance sheet resulted in incremental free cash flow on both a year-over-year and sequential quarter basis. Operationally, we continue to demonstrate our core values of being the National Champion for MENA and generating In-Country value with the announcements of a well testing win in Kuwait and a partnership with a significant customer in Oman to create 600 new jobs for Omanis, respectively."

Mr. Foda continued, "Additionally, last month, NESR participated in the 2021 Future Investment Initiative in Riyadh, Saudi Arabia, where we announced the creation of our ESG Impact Segment. The announcement highlighted NESR's commitment to improving the industry ESG performance and delivering services that seek to mitigate climate change, enhance water management and conservation, minimize environmental waste in the industry, and provide innovative energy solutions."

Net Income Results

Net income for the fourth quarter of 2020 is $16.5 million. Adjusted net income for the fourth quarter of 2020 is $18.5 million and includes adjustments totaling $1.9 million (collectively, "Total Charges and Credits") mainly related to integration costs associated with the acquisition of SAPESCO in Egypt 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 $0.18 of diluted earnings per share ("EPS") for the fourth 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 fourth quarter of 2020 is $0.20.

Adjusted EBITDA Results

The Company produced Adjusted EBITDA of $54.6 million during the fourth quarter of 2020, growing 6% as compared to $51.7 million in the fourth quarter of 2019. Fourth quarter 2020 Adjusted EBITDA includes adjustments for certain Total Charges and Credits (those not related to interest, taxes, and/or depreciation and amortization) of $1.9 million. Included in our results are gains of $9.6 million on lower realized earnout payments on the recent transaction and an unfavorable non-cash charge of $3 million for end of service liabilities. The Company posted the following results for the periods presented.

(in thousands) Quarter endedDecember 31, 2020  Quarter endedSeptember 30, 2020  Quarter endedDecember 31, 2019 
Revenue $213,175  $218,423  $185,176 
Adjusted EBITDA $54,615  $55,803  $51,749 

Production Services Segment Results

The Production Services segment contributed $135.6 million to consolidated revenue for the fourth quarter of 2020, an improvement of 12% from $121.0 million in the fourth quarter of 2019. Segment Adjusted EBITDA, a non-GAAP measure, was $38.7 million for the fourth quarter of 2020. Adjusted EBITDA margins were substantially flat on a sequential quarter basis and down slightly year-over-year due to product mix. The Production Services segment posted the following results for the periods presented.

(in thousands) Quarter endedDecember 31, 2020  Quarter endedSeptember 30, 2020  Quarter endedDecember 31, 2019 
Revenue $135,605  $148,292  $121,023 
Operating income $11,502  $21,425  $14,610 
Adjusted EBITDA $38,705  $42,891  $40,434 

Drilling and Evaluation Services Segment Results

The Drilling and Evaluation ("D&E") Services segment contributed $77.6 million to consolidated revenue, a one-quarter record, for the fourth quarter of 2020. D&E segment revenue increased 11% as compared to the sequential quarter and 21% as compared to the prior year quarter. Segment Adjusted EBITDA, a non-GAAP measure, totaled $19.6 million in the fourth quarter of 2020, growing 19% as compared to $16.5 million in the third quarter of 2020 and 44% as compared to $13.6 million in the fourth quarter of 2019. Adjusted EBITDA Margins improved on both a sequential quarter and year-over-year basis from 24% and 21%, respectively, to 25%, on the strength of revenue growth.

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

(in thousands) Quarter endedDecember 31, 2020  Quarter endedSeptember 30, 2020  Quarter endedDecember 31, 2019 
Revenue $77,570  $70,131  $64,153 
Operating income $8,812  $7,377  $4,956 
Adjusted EBITDA $19,588  $16,492  $13,645 

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 $75.0 million as of December 31, 2020, compared to $73.2 million as of December 31, 2019.

Total debt as of December 31, 2020 is $398.5 million with $89.9 million of such debt classified as short-term. Working capital totaled $160.0 million as of December 31, 2020. Free cash flow, a non-GAAP measure, for the fourth quarter of 2020 is $33.3 million, improving by $24.6 million as compared to the third quarter of 2020 and $7.3 million as compared to the fourth 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 $323.5 million as of December 31, 2020 as compared to $349.4 million as of September 30, 2020 and $310.3 million as of December 31, 2019. Net Debt has decreased quarter-over-quarter due to improved free cash flows and debt payments. Year-over-year, Net Debt has increased 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, February 24, 2021, to discuss fourth 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, 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 closed 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: changing commodity prices, market volatility and other market trends that affect our customers' demand for our services; disruptions to economic and market conditions caused by the coronavirus (COVID-19) and other public health crises and threats; [the level of capital spending and access to capital markets by oil and gas companies;] political, market, financial and regulatory risks, including those related to the geographic concentration of our customers; our operations, including maintenance, upgrades and refurbishment of our assets, may require significant capital expenditures, which may or may not be available to us; operating hazards inherent in our industry and the ability to secure sufficient indemnities and insurance; our ability to successfully integrate acquisitions; [the impact of industry consolidation on our results]; competition, including for capital and technological advances; 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 fourth quarter ended December 31, 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 December 31, 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 CONSOLIDATED BALANCE SHEETS

(In US$ thousands, except share data)

  December 31, 2020  December 31, 2019 
       
Assets      
Current assets      
Cash and cash equivalents $75,017  $73,201 
Accounts receivable, net  117,303   98,799 
Unbilled revenue  158,457   76,347 
Service inventories, net  94,263   78,841 
Prepaid assets  11,320   9,590 
Retention withholdings  36,773   40,970 
Other receivables  19,094   14,019 
Other current assets  4,025   11,442 
Total current assets  516,252   403,209 
Non-current assets        
Property, plant and equipment, net  434,374   419,307 
Intangible assets, net  110,376   122,714 
Goodwill  619,778   574,764 
Other assets  2,797   2,370 
Total assets $1,683,577  $1,522,364 
         
Liabilities and equity        
Liabilities        
Accounts payable  141,021   65,704 
Accrued expenses  73,627   69,137 
Current installments of long-term debt  47,500   15,000 
Short-term borrowings  42,360   37,963 
Income taxes payable  9,539   7,542 
Other taxes payable  11,289   7,189 
Other current liabilities  30,926   25,601 
Total current liabilities  356,262   228,136 
         
Long-term debt  308,614   330,564 
Deferred tax liabilities  21,600   26,217 
Employee benefit liabilities  21,515   16,745 
Other liabilities  31,168   34,230 
Total liabilities  739,159   635,892 
         
Commitments and contingencies  -   - 
         
Equity        
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at December 31, 2020 and December 31, 2019, respectively  -   - 
Common stock and additional paid in capital, no par value; unlimited shares authorized; 87,777,553 and 87,187,289 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively  826,614   818,782 
Retained earnings  117,748   67,661 
Accumulated other comprehensive income  64   29 
Total shareholders' equity  944,426   886,472 
Non-controlling interests  (8)  - 
Total equity  944,418   886,472 
Total liabilities and equity $1,683,577  $1,522,364 

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

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

  Quarter ended  Year-to-date period ended 
Description December 31,
2020
  December 31,
2019
  December 31,
2020
  December 31,
2019
 
             
Revenues $213,175  $185,176  $834,146  $658,385 
Cost of services  (178,154)  (154,083)  (678,720)  (506,799)
Gross profit  35,021   31,093   155,426   151,586 
Selling, general and administrative expenses  (18,887)  (17,248)  (72,077)  (63,840)
Amortization  (3,962)  (3,896)  (15,817)  (15,932)
Operating income  12,172   9,949   67,532   71,814 
Interest expense, net  (3,411)  (4,280)  (15,879)  (18,971)
Other income / (expense), net  9,522   221   9,139   (408)
Income before income tax  18,283   5,890   60,792   52,435 
Income tax expense  (1,765)  (2,166)  (10,705)  (13,071)
Net income  16,518   3,724   50,087   39,364 
Net income / (loss) attributable to non-controlling interests  -   -   -   - 
Net income attributable to shareholders $16,518  $3,724  $50,087  $39,364 
                 
Weighted average shares outstanding:                
Basic  90,017,834   87,168,937   88,845,618   86,997,554 
Diluted  90,162,873   87,168,937   88,990,657   86,997,554 
                 
Net earnings per share:                
Basic $0.18  $0.04  $0.56  $0.45 
Diluted $0.18  $0.04  $0.56  $0.45 

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

(In US$ thousands)

  Year-to date period ended  Quarter ended 
  December 31, 2020  December 31, 2019  December 31, 2019 
          
Cash flows from operating activities:         
Net income $50,087  $39,364  $16,518 
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and amortization  120,778   88,111   28,995 
Shares issued for transaction costs  -   -   - 
Share-based compensation expense  7,832   5,654   1,990 
Loss (Gain) on disposal of assets  1,946   (1,659)  1,258 
Non-cash interest expense  (271)  1,884   (153)
Deferred tax expense (benefit)  (4,617)  (3,935)  (1,285)
Allowance for doubtful receivables  188   1,771   285 
Provision for obsolete service inventories  1,071   622   250 
Equity stock-earn outs  (9,619)  -   (9,619)
Other operating activities, net  579   90   763 
Changes in operating assets and liabilities:            
(Increase) decrease in accounts receivable  (2,565)  (39,176)  10,658 
(Increase) decrease in Unbilled revenue  (74,455)  19,171   (950)
(Increase) decrease in Retention withholdings  6,367   (18,960)  (7,514)
(Increase) in inventories  (12,535)  (21,312)  (1,780)
(Increase) in prepaid expenses  (1,051)  (2,573)  (3,053)
(Increase) decrease in other current assets  (438)  374   (2,662)
(Increase) decrease in other long-term assets and liabilities  (5,933)  8,623   (187)
Increase in accounts payable and accrued expenses  55,323   19,438   14,353 
Increase (decrease) in other current liabilities  2,639   (8,396)  1,405 
Net cash provided by operating activities  135,326   89,091   49,272 
             
Cash flows from investing activities:            
Capital expenditures  (91,430)  (107,938)  (15,982)
Proceeds from disposal of assets  (1,363)  1,625   (2,853)
Proceeds from the Company's Trust account  -   -   - 
Acquisition of business, net of cash acquired  (13,218)  -   (1,958)
Other investing activities  (574)  (1,025)  54 
Net cash used in investing activities  (106,585)   (107,338)   (20,739) 
             
Cash flows from financing activities:            
Proceeds from long-term debt  15,000   365,000   - 
Repayments of long-term debt  (25,972)  (285,048)  (7,500)
Proceeds from short-term borrowings  33,753   49,305   18,825 
Repayments of short-term borrowings  (27,433)  (56,965)  (11,604)
Payments on capital leases  (19,581)  -   (3,902)
Payments on seller-provided financing for capital expenditures  (2,727)  -   178 
Proceeds from issuance of shares  -   -   - 
Redemption of ordinary shares  -   -   - 
Payment of deferred underwriting fees  -   -   - 
Dividend paid  -   -   - 
Other financing activities, net  -   (5,717)  - 
Net cash provided by (used in) financing activities  (26,960)   66,575   (4,003) 
             
Effect of exchange rate changes on cash  35   (19)  - 
Net increase (decrease) in cash  1,816   48,309   24,530 
Cash and cash equivalents, beginning of period  73,201   24,892   50,487 
Cash and cash equivalents, end of period $75,017  $73,201  $75,017 
             
Supplemental disclosure of cash flow information:            
Interest paid  12,667   17,290   2,515 
Income taxes paid  15,641   19,192   2,999 

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 endedDecember 31, 2020    Quarter endedSeptember 30, 2020    Quarter endedDecember 31, 2019 
   NetIncome    DilutedEPS    Net Income    DilutedEPS     Net Income    DilutedEPS 
                              
Net Income  16,518    0.18    11,666    0.13    3,724    0.04 
Add Charges and Credits:                                               
Transaction and other costs    1,936      0.02      2,499      0.03      15,224      0.17 
Total Charges and Credits(1)    1,936      0.20      2,499      0.03      15,224      0.17 
Total Adjusted Net Income  18,454    0.20    14,165    0.16    18,948    0.21 

 

 

(1)

In the fourth quarter of 2020, Total Charges and Credits included $1.9 million mainly related to integration costs associated with the acquisition of SAPESCO in Egypt and restructuring activities. 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. Similarly, in the fourth quarter of 2019, Total Charges and Credits included $15.2 million mainly related to integration and restructuring costs, higher startup and qualifying costs in conjunction with new contracts, specifically the unconventional stimulation services contract setup in Saudi Arabia, and other discrete provisions that included non-cash actuarial adjustments and tax reserve charges.

 

Table 2 - Reconciliation of Net Income to Adjusted EBITDA

   Quarter endedDecember 31, 2020    Quarter endedSeptember 30, 2020    Quarter endedDecember 31, 2019 
               
Net Income  16,518    11,666    3,724 
Add:                       
Income Taxes    1,765      3,565      2,166 
Interest Expense, net    3,411      3,793      4,280 
Depreciation and Amortization    30,985      34,280      29,980 
Charges and Credits impacting Adjusted EBITDA(2)    1,936      2,499      11,599 
Total Adjusted EBITDA  54,615    55,803    51,749 

 

 

(2)

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

 

Table 3 - Reconciliation of Segment EBITDA to Adjusted EBITDA

   Quarter ended
December 31, 2020
    Quarter ended
September 30, 2020
    Quarter ended
December 31, 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  37,555    1,150    38,705    41,705    1,186    42,891    32,832    7,602    40,434 
Drilling & Evaluation    19,363      225      19,588      15,538      954      16,492      12,093      1,552      13,645 
Unallocated    (4,239)    561      (3,678)    (3,939)    359      (3,580)    (2,445)    2,445      (2,330)
Total  52,679    1,936    54,615    53,304    2,499    55,803    40,150    11,599    51,749 

 

Table 4 - Reconciliation of Segment EBITDA to Segment Operating Income

   Quarter ended December 31, 2020    Quarter ended September 30, 2020    Quarter ended December 31, 2019 
Production Services:              
Segment EBITDA  37,555    41,705    32,832 
Depreciation and amort.    (19,736)    (20,222)    (19,290)
Other (income)/expense, net    (6,317)    (58)    1,068 
Segment Operating Income    11,502      21,425      14,610 
Drilling and Evaluation Services:                       
Segment EBITDA    19,363      15,538      12,093 
Depreciation and amort.    (7,477)    (8,153)    (6,313)
Other (income)/expense, net    (3,074)    (8)    (824)
Segment Operating Income    8,812      7,377      4,956 
Unallocated:                       
Segment EBITDA    (4,239)    (3,939)    (4,775)
Share-based compensation    (1,990)    (2,082)    (1,597)
Depreciation and amort.    (1,782)    (3,823)    (2,780)
Other (income)/expense, net    (131)    29      (465)
Unallocated Operating Income    (8,142)    (9,815)    (9,617)
Total Operating Income  12,172    18,987    9,949 

 

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

   Quarter Ended 
   December 31, 2020    September 30, 2020    December 31, 2019 
               
Net cash provided by (used in) operating activities  49,272    33,455    43,801 
Less:                       
Capital expenditures    (15,982)    (24,787)    (17,774)
Free cash flow  33,290    8,668    26,027 

 

Table 6 - Reconciliation to Net Debt

   December 31, 2020    September 30, 2020    December 31, 2019 
               
Current installments of long-term debt  47,500    43,750    15,000 
Short-term borrowings    42,360      36,392      37,963 
Long-term debt    308,614      319,738      330,564 
Less:                       
Cash and cash equivalents    75,017      50,487      73,201 
Net Debt  323,457    349,393    310,326 

For inquiries regarding NESR, please contact:
Christopher L. Boone
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

SOURCE: National Energy Services Reunited Corp



View source version on accesswire.com:
https://www.accesswire.com/631542/National-Energy-Services-Reunited-Corp-Reports-Fourth-Quarter-2020-Financial-Results

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.