ProFrac (ACDC) - 2023 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2023, were $851.7 million, a 147$345.0 million in the same period in 2022[124] - Stimulation services revenues increased by $454.0 million, or 135$69.8 million, or 563%, driven by acquisitions and increased demand, with approximately 39% of revenue being intercompany[126] - Manufacturing revenues rose by $35.1 million, or 110$541.7 million, a 129% increase from $236.5 million in the same period in 2022[128] Expenses - Selling, general and administrative expenses increased to$76.3 million, up $55.3 million from$21.0 million in the same period in 2022, primarily due to higher personnel costs and stock-based compensation[132] - Depreciation, depletion, and amortization expenses increased to $110.3 million from$44.6 million, reflecting the impact of recent acquisitions and increased capital expenditures[133] Liquidity and Debt - As of March 31, 2023, the company had $57.5 million in cash and cash equivalents and$111.5 million available for borrowings, totaling a liquidity position of $169.0 million[141] - The company has$1.3 billion in long-term debt outstanding, with $140 million due over the next twelve months, indicating a manageable debt maturity profile[148] Capital Expenditures and Acquisitions - Capital expenditures for the three months ended March 31, 2023, were$83.2 million, including investments in electric-powered hydraulic fracturing fleets and engine upgrades[149] - Capital expenditures are expected to accelerate over the next six months due to projected project completions and cash outlays[149] - The company plans to remain disciplined with capital allocation and may reduce capital expenditures based on total fleet activity levels[149] - The company acquired Producers for approximately $36.5 million and Performance Proppants for$464.8 million, enhancing its service capabilities in key regions[123] Future Funding and Market Risk - Future acquisitions may be funded through borrowings under the ABL credit facility and various financing sources, including equity or debt securities[152] - The company believes its cash and cash equivalents, along with cash provided by operations, will be sufficient to fund capital expenditures and obligations for at least the next 12 months[153] - A 1% increase in interest rates would result in an annual increase in interest expense of approximately $11.1 million based on outstanding debt as of March 31, 2023[156] - The company does not engage in speculative transactions and does not utilize financial instruments for trading purposes, limiting its market risk exposure[155] - The company has historically funded acquisitions through equity securities and borrowings under its term loan facility or ABL credit facility[152] - The ability to complete future offerings of equity or debt securities will depend on market conditions and the company's financial condition[152] - Market risk exposure has not materially changed since December 31, 2022[156]