ProFrac (ACDC) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2024 was $581.5 million, a decrease of$276.0 million or 32.2% from Q1 2023[111] - Net income for Q1 2024 was $1.8 million, down$20.2 million or 91.5% compared to Q1 2023[111] - Cash provided by operating activities in Q1 2024 was $79.1 million, a decrease of$154.4 million or 66.1% from Q1 2023[111] - Stimulation services revenue decreased by $272.9 million or 35$4.5 million or 5% in Q1 2024, attributed to lower average prices despite increased volumes sold[115] - Manufacturing revenue decreased by $23.6 million or 35$1,085.1 million as of March 31, 2024, a decrease of $22.8 million from December 31, 2023[111] - Interest expense for Q1 2024 was$37.6 million, an increase from $34.9 million in Q1 2023, due to higher average interest rates[128] - As of March 31, 2024, the company had$1,085.1 million in long-term debt, with $136.4 million due within the next twelve months[139] - A 1$10.0 million[147] - Net cash used in financing activities was $22.8 million in Q1 2024, compared to$327.1 million provided in Q1 2023, mainly due to debt repayments[137] Cash Flow and Investments - Net cash provided by operating activities decreased to $79.1 million in Q1 2024 from$233.5 million in Q1 2023, primarily due to lower earnings[136] - Net cash used in investing activities was $53.3 million in Q1 2024, significantly lower than$525.8 million in Q1 2023, reflecting reduced cash for acquisitions and capital expenditures[137] - Capital expenditures for Q1 2024 amounted to $59.9 million, with full-year estimates ranging from$150 million to $200 million for maintenance and an additional$100 million for growth initiatives[141] Acquisitions and Expenses - The company acquired all remaining equity interests of BPC in April 2024 for approximately $23 million, including cash and debt obligations[112] - Selling, general and administrative expenses decreased by$16.3 million or 25% in Q1 2024, mainly due to acquisition synergies[122] Legal and Compliance - The company is closely monitoring compliance with a covenant requiring a maximum Total Net Leverage Ratio of 2.00 to 1.00 due to lower than expected operating results[140] - The company is engaged in multiple patent infringement lawsuits, which could materially affect liquidity depending on the outcomes[144] Other Obligations - The company has $71.1 million in estimated tax receivable agreement obligations, with$6.4 million due in the next twelve months[143] - Purchase commitments for hydraulic fracturing equipment components totaled $28.7 million as of March 31, 2024[142]