ProFrac (ACDC)2024-11-06 21:05Financial Performance - Total revenue for the three and nine months ended September 30, 2024, was $575.3 million and $1,736.2 million, representing an increase of $1.1 million and a decrease of $404.7 million from the same periods in 2023[135]. - Net loss attributable to ProFrac Holding Corp. for the three and nine months ended September 30, 2024, was $45.2 million and $110.1 million, reflecting decreases of $26.3 million and $110.3 million from the same periods in 2023, including pretax goodwill impairment charges of $6.8 million and $74.5 million, respectively[135]. - Stimulation services revenues for the three months ended September 30, 2024, increased by $17.6 million, or 4%, while for the nine months, it decreased by $357.9 million, or 19%[137]. - Proppant production revenues for the three and nine months ended September 30, 2024, decreased by $45.6 million and $90.4 million, or 46% and 31%, respectively[138]. - Manufacturing revenues for the three and nine months ended September 30, 2024, increased by $17.7 million and $18.9 million, or 40% and 13%, respectively[139]. Expenses and Impairments - Selling, general and administrative expenses, excluding stock-based compensation, for the three months ended September 30, 2024, increased by $2.6 million, or 5%[147]. - Goodwill impairment charge of $67.7 million was recorded for the three months ended September 30, 2024, due to reduced operating results in the Haynesville Proppant reporting unit[150]. - In Q3 2024, the company reported goodwill impairment charges of $2.4 million and $4.4 million for the Permian Proppant and Eagle Ford Proppant reporting units, respectively, due to reduced operating results[151]. - Total operating expenses for the nine months ended September 30, 2024, were $27.2 million, compared to $17.8 million in the same period of 2023, reflecting an increase in litigation expenses and supply commitment charges[152]. - Interest expense for the nine months ended September 30, 2024, was $117.8 million, consistent with $116.1 million in the same period of 2023[157]. Cash Flow and Liquidity - Cash flows from operating activities decreased to $290.8 million for the nine months ended September 30, 2024, down from $510.8 million in the same period of 2023, primarily due to lower earnings[167]. - As of September 30, 2024, the company had $20.5 million in cash and cash equivalents and $88.7 million available for borrowings, resulting in a total liquidity position of $109.2 million[165]. - The company had $1,205.7 million in long-term debt outstanding as of September 30, 2024, with $171.9 million due within the next twelve months[171]. Capital Expenditures and Commitments - Capital expenditures for the nine months ended September 30, 2024, were $191.8 million, with expectations for full-year expenditures ranging from $150 million to $200 million for maintenance and an additional $100 million for growth initiatives[174][175]. - Purchase commitments as of September 30, 2024, included $5.4 million for 2024 and $55.8 million for 2025 related to minimum sand commitments and hydraulic fracturing equipment components[177]. Acquisitions and Legal Matters - In April 2024, the company acquired all remaining equity interests of BPC for a total purchase consideration of $39.8 million[135]. - In June 2024, the company acquired 100% of AST for $174.0 million in cash and 100% of NRG for $6.0 million in cash[135]. - The company settled multiple patent infringement lawsuits with Halliburton in September 2024, with the financial effects included in the consolidated financial statements[179]. Market Risks - As of September 30, 2024, the company held no derivative instruments that materially increased exposure to market risks[183]. - The company is subject to interest rate risk on its variable-rate debt[183]. - A 1% increase in interest rates on variable-rate debt would increase annual interest payments by approximately $11.1 million[183].