ProFrac Holding Corp. Reports First Quarter 2024 Financial and Operational Results

Core Viewpoint - ProFrac Holding Corp. reported strong financial results for Q1 2024, showing significant improvements in revenue, net income, and cash flow compared to the previous quarter, indicating effective execution of strategic initiatives and operational efficiencies [2][4][5]. Financial Performance - Total revenue for Q1 2024 was $581.5 million, a sequential increase of approximately 19$3.0 million, a turnaround from a net loss of $96.5 million in Q4 2023 [2][21]. - Adjusted EBITDA grew approximately 46$159.7 million [2][24]. - Net cash provided by operating activities increased approximately 85% sequentially to $79.1 million [2][25]. - Free cash flow grew 102$25.8 million [2][25]. Business Segment Performance - The Stimulation Services segment generated revenues of $517.3 million with an Adjusted EBITDA of$125.0 million [4][24]. - The Proppant Production segment reported revenues of $77.7 million and Adjusted EBITDA of$28.4 million, with 31% of its revenue being intercompany [4][24]. - The Manufacturing segment generated revenues of $43.5 million with an Adjusted EBITDA of$4.4 million, where 78% of the revenue was intercompany [4][24]. - Other Business Activities generated revenues of $41.7 million with an Adjusted EBITDA of$3.6 million [4][24]. Capital Expenditures and Allocation - Cash capital expenditures totaled $59.9 million in Q1 2024, reflecting investments in fleet deployments and growth initiatives [5]. - The company expects maintenance-related capital expenditures for the full year 2024 to be between$150 million and $200 million, with growth-related capital expenditures around$100 million [5]. Balance Sheet and Liquidity - Total net debt outstanding as of March 31, 2024, was $1.06 billion, a decrease of approximately$26 million from the previous quarter [7]. - Total cash and cash equivalents were $28.3 million, with$5.2 million related to Flotek and not accessible by the company [7]. - The company had $166.9 million of liquidity, including approximately$23.1 million in cash and cash equivalents, excluding Flotek [7]. Outlook - The company anticipates steady pricing in the Stimulation Services segment and expects further improvements in profitability per fleet due to its superior cost structure [3]. - In the Proppant Production segment, volumes and profitability are expected to improve alongside the expansion of third-party volumes [3].