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National Energy Services Reunited Corp. Reports Third Quarter 2020 Financial Results

·23 min read

HOUSTON, TX / ACCESSWIRE / October 28, 2020 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR) (NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") and Asia Pacific regions, today reported its financial results for the quarter ended September 30, 2020. The Company posted the following results for the periods presented:

  • Revenue for the third quarter of 2020 is $218 million, growing 35% year-over-year and 7% over the sequential quarter

  • Free cash flow (a non-GAAP measure) for the third quarter of 2020 is $9 million*

  • Net Income for the third quarter of 2020 is $12 million, growing 11% over the sequential quarter

  • Adjusted Net Income (a non-GAAP measure) for the third quarter of 2020 is $14 million*

  • Adjusted EBITDA (a non-GAAP measure) is $56 million, an increase of 17% year-over-year and 8% over the sequential quarter*

  • Diluted Earnings per Share ("EPS") for the third quarter of 2020 is $0.13

  • Adjusted Diluted EPS (a non-GAAP measure) for the third quarter of 2020 is $0.16*

Three Months Ended

Variance

(in thousands except per share amounts and percentages)

September 30,

2020

June 30, 2020

September 30,

2019

Sequential

Year-over- year

Revenue

$

218,423

$

203,249

$

161,606

7

%

35

%

Net income

11,666

10,536

11,110

11

%

5

%

Adjusted net income (non-GAAP)*

14,165

12,342

16,195

15

%

(13

)%

Adjusted EBITDA (non-GAAP)*

55,803

51,841

47,708

8

%

17

%

Diluted EPS

0.13

0.12

0.13

8

%

-

%

Adjusted Diluted EPS (non-GAAP)*

0.16

0.14

0.19

14

%

(16

)%

Free cash flow (non-GAAP)*

8,668

15,531

(12,530

)

(6,863

)

21,198

*The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1, 2, 3, 4, 5 and 6 below for reconciliations of GAAP to non-GAAP financial measures.

Sherif Foda, Chairman of the Board and CEO of NESR, said, "We are incredibly blessed to have such talented employees who always manage to beat all records and continue to grow and deliver in contrast to the market despite the existence of a worldwide pandemic. We maintained our usual close contacts with our customers in the region and managed to achieve new milestones in several initiatives and contracts. We are honored to have our clients' trust and are very pleased to further consolidate our presence in the Sultanate of Oman, one of our key foundational countries, recognizing our full alignment with our primary customer enabling us to amplify our investment and long term goals. This is NESR's ESG strategy in action, reflecting clear commitment and social contributions to the countries where we operate."

Mr. Foda continued, "We concluded our acquisition of Sahara Petroleum Services Company S.A.E. (SAPESCO) during the quarter and managed to close the immediate transaction payments entirely with available cash from operations. We are already capitalizing on their qualifications in several countries and will be announcing further contract awards in the coming quarters."

Net Income Results

Net income for the third quarter of 2020 is $11.7 million. Net income for the third quarter of 2020, second quarter of 2020, and third quarter of 2019, includes amortization expenses of approximately $4.0 million, $3.9 million, and $4.0 million, respectively, associated with intangible assets acquired primarily in the 2018 acquisitions of our two initial operating subsidiaries, NPS Holdings Limited and Gulf Energy S.A.O.C. (together, the "subsidiaries"). Adjusted net income for the third quarter of 2020 is $14.2 million and includes adjustments totaling $2.5 million (collectively, "Total Charges and Credits") mainly related to nonrecurring transaction and integration costs associated with the acquisition of SAPESCO in Egypt. A complete list of the adjusting items and the associated reconciliation from GAAP has been provided in Table 1 below in the section entitled "Reconciliation of Net Income and Adjusted Net Income."

The Company reported $0.13 of diluted earnings per share ("EPS") for the third quarter of 2020. Adjusted for the impact of Total Charges and Credits, Adjusted Diluted EPS, a non-GAAP measure described in Table 1 below, for the third quarter of 2020 is $0.16.

Adjusted EBITDA Results

The Company produced Adjusted EBITDA of $55.8 million during the third quarter of 2020, growing 17% as compared to $47.7 million in the third quarter of 2019, and improving 8% as compared to $51.8 million in the second quarter of 2020. Third quarter 2020 Adjusted EBITDA includes adjustments for certain Total Charges and Credits (those not related to interest, taxes, and/or depreciation and amortization) of $2.5 million. The Company posted the following results for the periods presented.

(in thousands)

Quarter ended

September 30, 2020

Quarter ended

June 30, 2020

Quarter ended

September 30, 2019

Revenue

$

218,423

$

203,249

$

161,606

Adjusted EBITDA

$

55,803

$

51,841

$

47,708

Production Services Segment Results

The Production Services segment contributed $148.3 million to consolidated revenue for the third quarter of 2020, an improvement of 53% from $97.2 million in the third quarter of 2019 and 7% from $139.0 million in the second quarter of 2020. Segment Adjusted EBITDA, a non-GAAP measure, increased to $42.9 million from $40.5 million in the second quarter of 2020 and $34.2 million in the third quarter of 2019, an improvement of 6% and 25%, respectively. The Production Services segment posted the following results for the periods presented.

(in thousands)

Quarter ended

September 30, 2020

Quarter ended

June 30, 2020

Quarter ended

September 30, 2019

Revenue

$

148,292

$

139,034

$

97,160

Operating income

$

21,425

$

20,217

$

20,447

Adjusted EBITDA

$

42,891

$

40,477

$

34,218

Drilling and Evaluation Services Segment Results

The Drilling and Evaluation ("D&E") Services segment contributed $70.1 million to consolidated revenue for the third quarter of 2020, growing 9% as compared to both the sequential quarter and prior year quarter. Segment Adjusted EBITDA, a non-GAAP measure, totaled $16.5 million in the third quarter of 2020, growing 4% as compared to $15.8 million in the second quarter of 2020 and 1% as compared to $16.3 million in the third quarter of 2019.

The D&E Services segment posted the following results for the periods presented.

(in thousands)

Quarter ended

September 30, 2020

Quarter ended

June 30, 2020

Quarter ended

September 30, 2019

Revenue

$

70,131

$

64,215

$

64,446

Operating income

$

7,377

$

8,334

$

9,183

Adjusted EBITDA

$

16,492

$

15,847

$

16,299

Offsetting both the Production Services segment and D&E Services segment results were certain corporate costs, which are not allocated to segment operations.

Balance Sheet

Cash and cash equivalents are $50.5 million as of September 30, 2020, compared to $73.2 million as of December 31, 2019.

Total debt as of September 30, 2020 is $399.9 million with $80.1 million of such debt classified as short-term. Working capital totaled $154.9 million as of September 30, 2020. Free cash flow, a non-GAAP measure, for the third quarter of 2020 is $8.7 million, improving by $21.2 million as compared to the third quarter of 2019. Net Debt, which is the sum of our recorded Current installments of long-term debt, Short-term borrowings, and Long-term debt less Cash and cash equivalents, totaled $349.4 million as of September 30, 2020 as compared to $342.3 million as of June 30, 2020 and $330.6 million as of September 30, 2019. Net Debt has increased quarter-over-quarter and year-over-year to fund the SAPESCO acquisition and working capital growth. A reconciliation of the comparable GAAP measures to Net Debt is provided in Table 6 below, entitled "Reconciliation to Net Debt."

Conference Call Information

NESR will host a conference call on Wednesday, October 28, 2020, to discuss third quarter financial results. The call will begin at 8:00 AM Eastern Time.

Investors, analysts and members of the media interested in listening to the conference call are encouraged to participate by dialing in to the U.S. toll-free line at 1-877-407-0312 or the international line at 1-201-389-0899. A live, listen-only webcast will also be available under the "Investors" section of the Company's website at www.nesr.com. A replay of the conference call will be available after the event under the "Investors" section of the Company's website.

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 5,000 employees and representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact, including statements regarding the impact of the COVID-19 pandemic and the Company's response to COVID-19, may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, completion and integration of acquisitions, including the SAPESCO acquisition, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, particularly during extended periods of low oil and gas prices, political disturbances, war, terrorist acts, public health crises and threats, including risks from the coronavirus COVID-19 outbreak, ongoing actions taken by businesses and governments and resulting significant disruption in international economies, international financial and oil markets; international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").

You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

The preliminary financial results for the Company's third quarter ended September 30, 2020 included in this press release represent the most current information available to management. The Company's actual results when disclosed in its Periodic Report on Form 6-K for the quarter ended September 30, 2020 may differ from these preliminary results as a result of the completion of the Company's financial statement closing procedures, final adjustments, completion of the independent registered public accounting firm's review procedures, and other developments that may arise between now and the disclosure of the final results.

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In US$ thousands, except share data)

September 30, 2020

December 31, 2019

Assets

Current assets

Cash and cash equivalents

$

50,487

$

73,201

Accounts receivable, net

128,719

98,799

Unbilled revenue

155,935

76,347

Service inventories, net

94,415

78,841

Prepaid assets

8,267

9,590

Retention withholdings

27,089

40,970

Other receivables

19,381

14,019

Other current assets

5,522

11,442

Total current assets

489,815

403,209

Non-current assets

Property, plant and equipment, net

458,505

419,307

Intangible assets, net

115,198

122,714

Goodwill

596,857

574,764

Other assets

3,069

2,370

Total assets

$

1,663,444

$

1,522,364

Liabilities and equity

Liabilities

Accounts payable

$

147,268

$

65,704

Accrued expenses

51,591

69,137

Current installments of long-term debt

43,750

15,000

Short-term borrowings

36,392

37,963

Income taxes payable

6,809

7,542

Other taxes payable

11,466

7,189

Other current liabilities

37,685

25,601

Total current liabilities

334,961

228,136

Long-term debt

319,738

330,564

Deferred tax liabilities

23,691

26,217

Employee benefit liabilities

19,438

16,745

Other liabilities

39,645

34,230

Total liabilities

737,473

635,892

Equity

Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at September 30, 2020 and December 31, 2019, respectively

-

-

Common stock, no par value; unlimited shares authorized; 87,777,553 and 87,187,289 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

801,545

801,545

Additional paid in capital

23,076

17,237

Retained earnings

101,230

67,661

Accumulated other comprehensive income

64

29

Total shareholders' equity

925,915

886,472

Non-controlling interests

56

-

Total equity

925,971

886,472

Total liabilities and equity

$

1,663,444

$

1,522,364

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In US$ thousands, except share data and per share amounts)

Quarter ended

Year-to-date period ended

Description

September 30,
2020

September 30,
2019

September 30,
2020

September 30,
2019

Revenues

$

218,423

$

161,606

$

620,971

$

473,209

Cost of services

(177,953

)

(121,326

)

(500,566

)

(352,716

)

Gross profit

40,470

40,280

120,405

120,493

Selling, general and administrative expenses

(17,449

)

(16,485

)

(53,190

)

(46,592

)

Amortization

(4,034

)

(4,033

)

(11,855

)

(12,036

)

Operating income

18,987

19,762

55,360

61,865

Interest expense, net

(3,793

)

(5,011

)

(12,468

)

(14,691

)

Other income / (expense), net

37

(130

)

(383

)

(629

)

Income before income tax

15,231

14,621

42,509

46,545

Income tax expense

(3,565

)

(3,511

)

(8,940

)

(10,905

)

Net income

11,666

11,110

33,569

35,640

Net income / (loss) attributable to non-controlling interests

-

-

-

-

Net income attributable to shareholders

$

11,666

$

11,110

$

33,569

$

35,640

Weighted average shares outstanding:

Basic

89,876,456

87,024,655

88,452,027

86,938,883

Diluted

89,876,456

87,024,655

88,452,027

86,938,883

Net earnings per share:

Basic

$

0.13

$

0.13

$

0.38

$

0.40

Diluted

$

0.13

$

0.13

$

0.38

$

0.40

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In US$ thousands)

Year-to-date
period ended
September 30, 2020

Year-to-date
period ended
September 30, 2019

Cash flows from operating activities:

Net income

$

33,569

$

35,640

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

91,783

59,728

Share-based compensation expense

5,842

4,057

Loss (Gain) on disposal of assets

688

(399

)

Non-cash interest expense

(118

)

1,361

Deferred tax expense (benefit)

(2,526

)

(1,733

)

Allowance for (reversal of) doubtful receivables

(97

)

920

Provision for obsolete service inventories

821

932

Other operating activities, net

(184

)

(100

)

Changes in operating assets and liabilities:

(Increase) in accounts receivable

(13,223

)

(46,523

)

(Increase) in inventories

(10,755

)

(15,123

)

Decrease (increase) in prepaid assets

2,002

(3,825

)

(Increase) in other current assets

(57,400

)

(5,537

)

(Increase) decrease in other long-term assets and liabilities

(4,025

)

5,403

Increase in accounts payable and accrued expenses

40,970

23,971

(Decrease) in other current liabilities

(1,293

)

(13,482

)

Net cash provided by operating activities

86,054

45,290

Cash flows from investing activities:

Capital expenditures

(75,448

)

(90,164

)

Proceeds from disposal of assets

1,490

1,125

Acquisition of business, net of cash acquired (Note 5)

(11,260

)

-

Other investing activities

(628

)

(932

)

Net cash used in investing activities

(85,846)

(89,971)

Cash flows from financing activities:

Proceeds from long-term debt

15,000

365,000

Repayments of long-term debt

(18,472

)

(285,048

)

Net change in overdraft facilities

-

(7,050

)

Proceeds from short-term borrowings

14,928

39,941

Repayments of short-term borrowings

(15,829

)

(44,250

)

Payments on capital leases

(15,679

)

-

Payments on seller-provided financing for capital expenditures

(2,905

)

-

Other financing activities, net

-

(5,703

)

Net cash (used in) provided by financing activities

(22,957)

62,890

Effect of exchange rate changes on cash

35

(19

)

Net (decrease) increase in cash

(22,714)

18,190

Cash and cash equivalents, beginning of period

73,201

24,892

Cash and cash equivalents, end of period

$

50,487

$

43,082

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

(In US$ thousands except per share amounts)

The Company uses and presents certain key non-GAAP financial measures to evaluate its business and trends, measure performance, prepare financial projections and make strategic decisions. Included in this release are discussions of earnings before interest, income tax and depreciation and amortization adjusted for certain non-recurring and non-core expenses ("Adjusted EBITDA"), net income and diluted earnings per share ("EPS") adjusted for certain non-recurring and non-core expenses ("Adjusted Net Income" and "Adjusted Diluted EPS," respectively), as well as a reconciliation of these non-GAAP measures to operating income, net income, and diluted EPS, respectively, in accordance with GAAP. The Company also discusses the non-GAAP balance sheet measure of the sum of our recorded current installments of long-term debt, short-term borrowings, and long-term debt less cash and cash equivalents ("Net Debt") in this release and provides a reconciliation to the GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt to Net Debt.

The Company believes that the presentation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS provides useful information to investors in assessing its financial performance and results of operations as the Company's board of directors, management and investors use Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS to compare the Company's operating performance on a consistent basis across periods by removing the effects of changes in capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), items that do not impact the ongoing operations (transaction, integration, and startup costs) and items outside the control of its management team. Similarly, Net Debt is used by management as a liquidity measure used to illustrate the Company's debt level absent variability in cash and cash equivalents, and the Company believes that the presentation of Net Debt provides useful information to investors in assessing its financial leverage. Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS should not be considered as an alternative to operating income, net income, or diluted EPS, respectively, the most directly comparable GAAP financial measures. Net Debt also should not be considered as an alternative to GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt. Finally, Free Cash Flow is used by management as a liquidity measure to illustrate the Company's ability to produce cash that is available to be distributed in a discretionary manner, after excluding investments in capital assets. Free Cash Flow should not be considered as an alternative to Net cash provided by (used in) operations or Net cash provided by (used in) investing activities, respectively, the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. You should not consider non-GAAP measures in isolation or as a substitute for an analysis of the Company's results as reported under GAAP.

Information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments is focused on the timing of when the services are performed during a well's lifecycle. Production Services are services performed during the production stage of a well's lifecycle. Drilling and Evaluation Services are services performed during the pre-production stages of a well's lifecycle. The Company believes that the presentation of Segment EBITDA provides useful information to investors in assessing its financial performance and results of operations.

Table 1 - Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS

Quarter ended

September 30, 2020

Quarter ended

June 30, 2020

Quarter ended

September 30, 2019

Net

Income

Diluted

EPS

Net Income

Diluted

EPS

Net Income

Diluted

EPS

Net Income

$

11,666

$

0.13

$

10,536

$

0.12

$

11,110

$

0.13

Add Charges and Credits:

Transaction and other costs

2,499

0.03

1,806

0.02

5,085

0.06

Total Charges and Credits(1)

2,499

0.03

1,806

0.02

5,085

0.06

Total Adjusted

$

14,165

$

0.16

$

12,342

$

0.14

$

16,195

$

0.19

(1)

In the third quarter of 2020, Total Charges and Credits included $2.5 million mainly related to nonrecurring transaction and integration costs associated with the acquisition of SAPESCO in Egypt. In the second quarter of 2020, Total Charges and Credits included $1.8 million mainly related to nonrecurring transaction and integration costs associated with the acquisition of SAPESCO in Egypt. Similarly, in the third quarter of 2019, Total Charges and Credits included $5.1 million in costs related to integration and restructuring costs, exceptional interest charges, and other discrete provisions.

Table 2 - Reconciliation of Net Income to Adjusted EBITDA

Quarter ended

September 30, 2020

Quarter ended

June 30, 2020

Quarter ended

September 30, 2019

Net Income

$

11,666

$

10,536

$

11,110

Add:

Income Taxes

3,565

2,848

3,511

Interest Expense, net

3,793

4,165

5,011

Depreciation and Amortization

34,280

32,486

23,196

Charges and Credits impacting Adjusted EBITDA(2)

2,499

1,806

4,880

Total Adjusted EBITDA

$

55,803

$

51,841

$

47,708

(2)

Charges and Credits impacting Adjusted EBITDA are described in Table 1 above.

Table 3 - Reconciliation of Segment EBITDA to Adjusted EBITDA

Quarter ended
September 30, 2020

Quarter ended
June 30, 2020

Quarter ended
September 30, 2019

EBITDA

Charges and Credits impacting Adjusted EBITDA

Adjusted EBITDA

EBITDA

Charges and Credits impacting Adjusted EBITDA

Adjusted EBITDA

EBITDA

Charges and Credits impacting Adjusted EBITDA

Adjusted EBITDA

Production Services

$

41,705

$

1,186

$

42,891

$

39,572

$

905

$

40,477

$

32,581

$

1,637

$

34,218

Drilling & Evaluation

15,538

954

16,492

15,631

216

15,847

15,239

1,060

16,299

Unallocated

(3,939

)

359

(3,580

)

(5,168

)

685

(4,483

)

(4,992

)

2,183

(2,809

)

Total

$

53,304

$

2,499

$

55,803

$

50,035

$

1,806

$

51,841

$

42,828

$

4,880

$

47,708

Table 4 - Reconciliation of Segment EBITDA to Segment Operating Income

Quarter ended September 30, 2020

Quarter ended June 30, 2020

Quarter ended September 30, 2019

Production Services:

Segment EBITDA

$

41,705

$

39,572

$

32,581

Depreciation and amort.

(20,222

)

(19,637

)

(12,322

)

Other (income)/expense, net

(58

)

282

188

Segment Operating Income

21,425

20,217

20,447

Drilling and Evaluation Services:

Segment EBITDA

15,538

15,631

15,239

Depreciation and amort.

(8,153

)

(7,318

)

(5,980

)

Other (income)/expense, net

(8

)

21

(76

)

Segment Operating Income

7,377

8,334

9,183

Unallocated:

Segment EBITDA

(3,939

)

(5,168

)

(4,992

)

Share-based compensation

(2,082

)

(2,125

)

(1,944

)

Depreciation and amort.

(3,823

)

(3,406

)

(2,950

)

Other (income)/expense, net

29

6

)

18

Unallocated Operating Income

(9,815

)

(10,693

)

(9,868

)

Total Operating Income

$

18,987

$

17,858

$

19,762

Table 5 - Reconciliation of Net cash provided by (used in) operating activities to Free Cash Flow

Quarter Ended

September 30, 2020

June 30, 2020

September 30, 2019

Net cash provided by (used in) operating activities

$

33,455

$

42,650

$

(21,118

)

Less:

Capital expenditures

(24,787

)

(27,119

)

(33,648

)

Free cash flow

$

8,668

$

15,531

$

(12,530

)

Table 6 - Reconciliation to Net Debt

September 30, 2020

June 30, 2020

September 30, 2019

Current installments of long-term debt

$

43,750

$

46,372

$

7,500

Short-term borrowings

36,392

39,781

28,261

Long-term debt

319,738

335,457

337,885

Less:

Cash and cash equivalents

50,487

79,317

43,082

Net Debt

$

349,393

$

342,293

$

330,564

For inquiries regarding NESR, please contact:

Christopher L. Boone
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

SOURCE: National Energy Services Reunited Corp via EQS Newswire



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