Solaris Energy Infrastructure, Inc.(SEI) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 revenue reached $96 million, a 28$14 million, translating to $0.19 per diluted Class A share, while adjusted pro forma net income was$7 million or $0.12 per fully diluted share[4] - Total revenues for the year ended December 31, 2024, reached$313,091 thousand, up 6.9% from $292,947 thousand in 2023[24] - Net income for the year ended December 31, 2024, was$28,918 thousand, a decrease of 25.5% from $38,775 thousand in 2023[20] - Adjusted pro forma net income for the year ended December 31, 2024, was$24,888,000, down from $37,457,000 in 2023, showing a decline of approximately 33.5$0.50, compared to $0.83 in 2023, representing a decrease of about 39.8$37 million, with guidance for Q1 2025 adjusted EBITDA expected to be between $44 million and$48 million[4] - Adjusted EBITDA for the year ended December 31, 2024, was $103,102 thousand, an increase of 6.5$96,693 thousand in 2023[24] - EBITDA for the year ended December 31, 2024, was $95,949,000, up from$86,087,000 in 2023, indicating a year-over-year growth of approximately 2.16%[32] - Adjusted EBITDA for the three months ended December 31, 2024, was $37,387,000, compared to$21,322,000 in the same period of 2023, reflecting an increase of about 75.5%[32] Capital Expenditures and Cash Flow - Capital expenditures in Q4 2024 were approximately $127 million, primarily for power equipment, with net cash from operating activities at$13 million[4] - Cash and cash equivalents at the end of the period increased to $159,867 thousand from$5,833 thousand in 2023[20] - As of December 31, 2024, Solaris had $325 million in outstanding borrowings and$160 million in total cash, reflecting a strong liquidity position[4] Assets and Equity - Total assets increased to $1,122,881 thousand as of December 31, 2024, compared to$468,297 thousand in 2023, representing a growth of 139.5%[18] - The company reported a total stockholders' equity of $666,729 thousand as of December 31, 2024, up from$315,580 thousand in 2023, reflecting a growth of 111.1%[18] Debt and Interest Expense - Long-term debt increased significantly to $307,605 thousand as of December 31, 2024, compared to$30,000 thousand in 2023[18] - Interest expense for the three months ended December 31, 2024, was $7,392,000, significantly higher than$912,000 for the same period in 2023[32] Dividends and Shareholder Returns - Solaris approved a dividend of $0.12 per share for Q1 2025, marking the 26th consecutive dividend, with a total of$198 million returned to shareholders cumulatively[4] Segment Performance - Fourth quarter 2024 segment adjusted EBITDA for Solaris Power Solutions was $24 million, expected to grow with an increase in revenue-generating capacity[8] - Solaris Logistics Solutions generated revenues of$274,457 thousand for the year ended December 31, 2024, while Solaris Power Solutions contributed $38,634 thousand[24] - The Solaris Logistics Solutions segment showed a strong rebound in early 2025, with increased activity due to market adoption of Solaris systems[3] Acquisitions and Partnerships - The company completed the MER Acquisition, resulting in a net cash outflow of$122,065 thousand[20] - The company established a long-term partnership with a key customer for a minimum of 500 megawatts for a new data center, finalizing a joint venture to co-own the power plant equipment[4] Stock-Based Compensation - Stock-based compensation expense for the year ended December 31, 2024, totaled $10,592,000, compared to$7,732,000 in 2023, indicating an increase of approximately 37.5%[32] Other Notable Transactions - The company recognized a gain of $7,461,000 on the sale of a 300-acre transload facility in Kingfisher, Oklahoma, which had zero net carrying value at the time of sale[36] - Acquisition-related costs for the year ended December 31, 2024, amounted to$4,358,000, reflecting the costs incurred to affect the MER Acquisition[36]