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Nuverra Announces Third Quarter and Year-to-Date 2019 Results

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--

Nuverra Environmental Solutions, Inc. (NYSE American: NES) (“Nuverra,” the “Company,” “we,” “us” or “our”) today announced financial and operating results for the third quarter and nine months ended September 30, 2019.

SUMMARY OF QUARTERLY RESULTS

  • Third quarter revenue was $43.1 million, a decrease of approximately 4.7%, or $2.1 million, when compared with revenue of $45.2 million in the second quarter of 2019.
  • When compared to the same period in the prior year, third quarter revenue decreased 13.2%, or $6.6 million.
  • Net loss for the third quarter was $6.1 million as compared to net losses of $5.0 million in the second quarter of 2019 and $7.1 million in the third quarter of 2018.
  • Adjusted EBITDA for the third quarter was $4.6 million, a decrease of $0.7 million compared with $5.3 million in the second quarter of 2019.
  • Adjusted EBITDA for the third quarter increased by $0.6 million over the same period in the prior year.
  • Total liquidity available as of September 30, 2019 was $19.9 million.

“In the third quarter of 2019, we are seeing more of the effects of the industry slowdown on our revenues,” said Charlie Thompson, Chief Executive Officer. “The biggest impacts were felt in the Rocky Mountain division third party trucking, lay flat and landfill businesses. Fewer fracs and flowbacks in our geographies impacted the third party business and we saw less drilling near our landfill. The Northeast division continued to be impacted by the reuse trend and the Haynesville market saw declining activity with the lower natural gas prices. Related to this decline in activity is greater pricing pressure from our customers and our competitors. We continue to work on cost reduction measures and operating efficiencies and are accelerating those measures as we start the fourth quarter. We have noticed an increase in Northeast disposal volumes since the middle of September and are optimistic that trend will continue in the fourth quarter. We expect continued pressure in the Rocky Mountain and the Southern divisions, but are focused on efficient customer service and safety to preserve customer relationships.”

THIRD QUARTER 2019 RESULTS

Third quarter revenue was $43.1 million, a decrease of $2.1 million, or 4.7%, from $45.2 million in the second quarter of 2019. Of this 4.7% decrease, approximately 3.4% is attributable to a decrease in activities and 1.3% to pricing decreases.

When compared to the third quarter of 2018, third quarter 2019 revenue decreased by 13.2%, or $6.6 million, primarily due to decreases in activity levels for water transfer services for all three divisions, partially offset by increases in disposal services in the Northeast and Southern divisions. In the Rocky Mountain division, the decrease in water transfer and disposal service revenues was primarily due to a $3.0 million decrease in water transfer revenues from lower trucking volumes outsourced to third parties, a $1.3 million reduction in water transfer revenues from lay flat temporary hose, and a $1.1 million decrease in disposal service revenues from our landfill. In the Northeast division, the reuse of production water in customer completion activities during the third quarter continued to negatively impact our activity levels for water transfer services with total billable hours down 12% from the prior year. Offsetting this decrease in the Northeast was an increase in disposal services primarily due to the acquisition of Clearwater Solutions in the fourth quarter of 2018, which contributed revenues of $2.2 million in the third quarter of 2019. In the Southern division, the lower activity levels for water transfer services is due to a decrease in trucking volumes primarily from one major customer.

Total costs and expenses for the third quarter were $48.1 million. Total costs and expenses, adjusted for special items, were $47.7 million, or a $1.6 million decrease when compared with $49.3 million in the second quarter of 2019. Total costs and expenses, adjusted for special items, decreased 14.6% compared with $55.9 million in the third quarter of 2018 as a result of lower activity levels, as well as a favorable service mix due to growth in higher margin disposal services and active cost reduction efforts over the past year.

Net loss for the third quarter was $6.1 million as compared to a net loss of $5.0 million in the second quarter of 2019. Net loss for the third quarter of 2018 was $7.1 million. For the third quarter of 2019, the Company reported a net loss, adjusted for special items, of $5.7 million. Special items in the third quarter primarily included gains on the sale of underutilized assets, offset by stock-based compensation expense and long-lived asset impairment charges for assets classified as held for sale in the Rocky Mountain division. This compares with a net loss, adjusted for special items, of $5.3 million in the second quarter of 2019 and $7.4 million in the third quarter of 2018.

Adjusted EBITDA for the third quarter of 2019 was $4.6 million, a decrease of $0.7 million compared with $5.3 million in the second quarter of 2019. Of the 13.7% decrease in adjusted EBITDA, 12.2% related to pricing decreases, 2.3% related to a decrease in activity levels, both of which were partially offset by a 0.8% reduction in corporate expenses. When compared to the third quarter of 2018, adjusted EBITDA increased $0.6 million, or 16.2%. The 16.2% increase is comprised of a benefit of 44.7% for acquisitions/closures and 23.3% for corporate items, partially offset by 39.0% for decreases in activity levels and 12.8% for decreases in pricing. Third quarter 2019 adjusted EBITDA margin was 10.6%, compared with 11.7% in the second quarter of 2019 and 7.9% in the third quarter of 2018.

YEAR-TO-DATE RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (“YTD”)

YTD revenue was $131.0 million, a decrease of $17.3 million, or 11.7%, from $148.3 million for the same period in 2018. The decrease in revenues is primarily due to decreases in water transfer services in all three divisions, partially offset by increases in disposal services in all three divisions. Additionally, $1.8 million in revenues associated with the Eagle Ford Shale area were included in revenues in the prior year but did not reoccur in the current year due to management’s decision to exit the Eagle Ford Shale area as of March 1, 2018.

In the Rocky Mountain division, the decrease in water transfer service revenues was primarily due to a $9.9 million decrease in revenues from lower trucking volumes outsourced to third parties and a $4.8 million reduction in revenues from lay flat temporary hose. In the Northeast division, the reuse of production water in customer completion activities during 2019 negatively impacted our activity levels for water transfer services with total billable hours down 9% from the prior year. Offsetting this decrease in the Northeast was an increase in disposal services primarily due to the acquisition of Clearwater Solutions in the fourth quarter of 2018, which contributed revenues of $6.7 million in 2019. In the Southern division, the lower activity levels for water transfer services is due to a decrease in trucking volumes from several key customers in the division.

YTD net loss was $17.4 million, an improvement of $33.1 million when compared with a net loss of $50.5 million for the same period in 2018. YTD net loss, adjusted for special items, was $17.1 million, an improvement of $12.9 million when compared with a net loss, adjusted for special items, of $30.0 million for the same period in 2018. YTD special items primarily included gains on the sale of underutilized assets, offset by stock-based compensation expense, continued reorganization expenses related to our 2017 chapter 11 filing and long-lived asset impairment charges for assets classified as held for sale in the Northeast and Rocky Mountain divisions.

YTD adjusted EBITDA was $14.4 million, an increase of $3.9 million, or 37.8%, when compared with the same period in 2018. Adjusted EBITDA margin for the 2019 YTD period was 11.0%, compared with 7.0% in 2018.

CASH FLOW AND LIQUIDITY

Net cash provided by operating activities for the nine months ended September 30, 2019 was $4.6 million, while capital expenditures net of asset sales consumed cash of $2.5 million. Asset sales were related to unused or under-utilized assets. The proceeds have been reinvested in 2019 in returns-driven growth projects, including the purchase of new trucks for our fleet.

Total liquidity available as of September 30, 2019 was $19.9 million. This consisted of cash and available revolver borrowings of $14.2 million, plus an additional $5.7 million delayed draw borrowing capacity under our second lien term loan. As of September 30, 2019, total debt outstanding was $36.9 million, consisting of $18.8 million under our senior secured term loan facility, $9.5 million under our second lien term loan facility, and $8.6 million of finance leases.

About Nuverra

Nuverra Environmental Solutions, Inc. is a leading provider of water logistics and oilfield services to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States. Our services include the delivery, collection, and disposal of solid and liquid materials that are used in and generated by the drilling, completion, and ongoing production of shale oil and natural gas. We provide a suite of solutions to customers who demand safety, environmental compliance and accountability from their service providers. Find additional information about Nuverra in documents filed with the U.S. Securities and Exchange Commission (“SEC”) at http://www.sec.gov.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. You can identify these and other forward-looking statements by the use of words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “might,” “will,” “should,” “would,” “could,” “potential,” “future,” “continue,” “ongoing,” “forecast,” “project,” “target” or similar expressions, and variations or negatives of these words.

These statements relate to our expectations for future events and time periods. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements, including statements regarding market and industry trends and developments, and any forward-looking statements contained herein are based on information available to us as of the date of this press release and our current expectations, forecasts and assumptions, and involve a number of risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date. Future performance cannot be ensured, and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include, among others: financial results that may be volatile and may not reflect historical trends due to, among other things, changes in commodity prices or general market conditions, acquisition and disposition activities, fluctuations in consumer trends, pricing pressures, transportation costs, changes in raw material or labor prices or rates related to our business and changing regulations or political developments in the markets in which we operate; risks associated with our indebtedness, including changes to interest rates, decreases in our borrowing availability, our ability to manage our liquidity needs and to comply with covenants under our credit facilities; the loss of one or more of our larger customers; difficulties in successfully executing our growth initiatives, including identifying and completing mergers, acquisitions, combinations and divestitures, successfully integrating merged, acquired, or combined business operations, and identifying and managing risks inherent in mergers, acquisitions, combinations and divestitures, as well as differences in the type and availability of consideration or financing for such mergers, acquisitions, combinations and divestitures; our ability to attract and retain key executives and qualified employees in key areas of our business; our ability to attract and retain a sufficient number of qualified truck drivers in light of industry-wide driver shortages and high-turnover; the availability of less favorable credit and payment terms due to changes in industry condition or our financial condition, which could constrain our liquidity and reduce availability under our revolving credit facility; higher than forecasted capital expenditures to maintain and repair our fleet of trucks, tanks, equipment and disposal wells; control of costs and expenses; changes in customer drilling, completion and production activities, operating methods and capital expenditure plans, including impacts due to low oil and/or natural gas prices or the economic or regulatory environment; risks associated with the limited trading volume of our common stock on the NYSE American Stock Exchange, including potential fluctuation in the trading prices of our common stock; risks and uncertainties associated with our completed restructuring process, including the outcome of a pending appeal of the order confirming the plan of reorganization; risks associated with the reliance on third-party analysts, appraisers, engineers and other experts; present and possible future claims, litigation or enforcement actions or investigations; risks associated with changes in industry practices and operational technologies and the impact on our business; risks associated with the operation, construction, development and closure of saltwater disposal wells, solids and liquids transportation assets, landfills and pipelines, including access to additional locations and rights-of-way, permitting and licensing, environmental remediation obligations, unscheduled delays or inefficiencies and reductions in volume due to micro- and macro-economic factors or the availability of less expensive alternatives; the effects of competition in the markets in which we operate, including the adverse impact of competitive product announcements or new entrants into our markets and transfers of resources by competitors into our markets; changes in economic conditions in the markets in which we operate or in the world generally, including as a result of political uncertainty; reduced demand for our services due to regulatory or other influences related to extraction methods such as hydraulic fracturing, shifts in production among shale areas in which we operate or into shale areas in which we do not currently have operations; the unknown future impact of changes in laws and regulation on waste management and disposal activities, including those impacting the delivery, storage, collection, transportation, treatment and disposal of waste products, as well as the use or reuse of recycled or treated products or byproducts; risks involving developments in environmental or other governmental laws and regulations in the markets in which we operate and our ability to effectively respond to those developments including laws and regulations relating to oil and natural gas extraction businesses, particularly relating to water usage, and the disposal, transportation and treatment of liquid and solid wastes; and natural disasters, such as hurricanes, earthquakes and floods, or acts of terrorism, or extreme weather conditions, that may impact our business locations, assets, including wells or pipelines, distribution channels, or which otherwise disrupt our or our customers’ operations or the markets we serve.

The forward-looking statements contained, or incorporated by reference, herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s views as of the date of this press release. The Company undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, changes in expectations or otherwise. Additional risks and uncertainties are disclosed from time to time in the Company’s filings with the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

Revenue:

 

 

 

 

 

 

 

Service revenue

$

38,862

 

 

$

45,694

 

 

$

119,101

 

 

$

136,541

 

Rental revenue

4,236

 

 

3,962

 

 

11,864

 

 

11,732

 

Total revenue

43,098

 

 

49,656

 

 

130,965

 

 

148,273

 

Costs and expenses:

 

 

 

 

 

 

 

Direct operating expenses

34,297

 

 

39,753

 

 

101,371

 

 

120,449

 

General and administrative expenses

4,774

 

 

5,849

 

 

15,529

 

 

31,183

 

Depreciation and amortization

8,928

 

 

10,018

 

 

27,340

 

 

36,731

 

Impairment of long-lived assets

120

 

 

100

 

 

237

 

 

4,563

 

Other, net

(4

)

 

49

 

 

(10

)

 

1,117

 

Total costs and expenses

48,115

 

 

55,769

 

 

144,467

 

 

194,043

 

Operating loss

(5,017

)

 

(6,113

)

 

(13,502

)

 

(45,770

)

Interest expense, net

(1,279

)

 

(1,241

)

 

(3,997

)

 

(3,695

)

Other income, net

280

 

 

169

 

 

457

 

 

683

 

Reorganization items, net

10

 

 

137

 

 

(200

)

 

(1,609

)

Loss before income taxes

(6,006

)

 

(7,048

)

 

(17,242

)

 

(50,391

)

Income tax expense

(46

)

 

(69

)

 

(171

)

 

(69

)

Net loss

$

(6,052

)

 

$

(7,117

)

 

$

(17,413

)

 

$

(50,460

)

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Net loss per basic common share

$

(0.39

)

 

$

(0.61

)

 

$

(1.11

)

 

$

(4.31

)

 

 

 

 

 

 

 

 

Net loss per diluted common share

$

(0.39

)

 

$

(0.61

)

 

$

(1.11

)

 

$

(4.31

)

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

15,715

 

 

11,696

 

 

15,657

 

 

11,696

 

Diluted

15,715

 

 

11,696

 

 

15,657

 

 

11,696

 

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

September 30,

 

December 31,

 

2019

 

2018

Assets

 

 

 

Cash and cash equivalents

$

3,028

 

 

$

7,302

 

Restricted cash

1,384

 

 

656

 

Accounts receivable, net

31,045

 

 

31,392

 

Inventories

3,137

 

 

3,358

 

Prepaid expenses and other receivables

3,224

 

 

2,435

 

Other current assets

386

 

 

1,582

 

Assets held for sale

4,502

 

 

2,782

 

Total current assets

46,706

 

 

49,507

 

Property, plant and equipment, net

197,911

 

 

215,640

 

Operating lease assets

3,133

 

 

 

Equity investments

38

 

 

41

 

Intangibles, net

765

 

 

1,112

 

Goodwill

29,518

 

 

29,518

 

Other assets

99

 

 

118

 

Total assets

$

278,170

 

 

$

295,936

 

Liabilities and Shareholders’ Equity

 

 

 

Accounts payable

$

6,745

 

 

$

9,061

 

Accrued and other current liabilities

13,023

 

 

16,704

 

Current portion of long-term debt

6,657

 

 

38,305

 

Current contingent consideration

500

 

 

500

 

Total current liabilities

26,925

 

 

64,570

 

Long-term debt

30,134

 

 

27,628

 

Noncurrent operating lease liabilities

1,479

 

 

 

Deferred income taxes

385

 

 

181

 

Other long-term liabilities

7,577

 

 

7,130

 

Total liabilities

66,500

 

 

99,509

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Common stock

158

 

 

122

 

Additional paid-in capital

337,342

 

 

303,463

 

Treasury stock

(436

)

 

 

Accumulated deficit

(125,394

)

 

(107,158

)

Total shareholders’ equity

211,670

 

 

196,427

 

Total liabilities and shareholders’ equity

$

278,170

 

 

$

295,936

 

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

Nine Months Ended

 

September 30,

 

2019

 

2018

Cash flows from operating activities:

 

 

 

Net loss

$

(17,413

)

 

$

(50,460

)

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

 

 

 

Depreciation and amortization

27,340

 

 

36,731

 

Amortization of debt issuance costs, net

287

 

 

 

Accrued interest added to debt principal

 

 

119

 

Stock-based compensation

1,740

 

 

11,492

 

Impairment of long-lived assets

237

 

 

4,563

 

Gain on sale of UGSI

 

 

(75

)

Gain on disposal of property, plant and equipment

(1,828

)

 

(919

)

Bad debt recoveries

(65

)

 

(164

)

Change in fair value of derivative warrant liability

(32

)

 

(323

)

Deferred income taxes

204

 

 

11

 

Other, net

322

 

 

541

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

412

 

 

1,423

 

Prepaid expenses and other receivables

(689

)

 

487

 

Accounts payable and accrued liabilities

(7,240

)

 

1,028

 

Other assets and liabilities, net

1,320

 

 

(234

)

Net cash provided by operating activities

4,595

 

 

4,220

 

Cash flows from investing activities:

 

 

 

Proceeds from the sale of property, plant and equipment

4,826

 

 

19,066

 

Purchases of property, plant and equipment

(7,341

)

 

(9,687

)

Proceeds from the sale of UGSI

 

 

75

 

Net cash (used in) provided by investing activities

(2,515

)

 

9,454

 

Cash flows from financing activities:

 

 

 

Payments on First and Second Lien Term Loans

(3,600

)

 

(2,132

)

Proceeds from Revolving Facility

139,661

 

 

172,336

 

Payments on Revolving Facility

(139,661

)

 

(172,336

)

Payments on Bridge Term Loan

(31,382

)

 

 

Proceeds from the issuance of stock

31,057

 

 

 

Payments on finance leases and other financing activities

(1,701

)

 

(1,399

)

Net cash used in financing activities

(5,626

)

 

(3,531

)

Change in cash, cash equivalents and restricted cash

(3,546

)

 

10,143

 

Cash and cash equivalents, beginning of period

7,302

 

 

5,488

 

Restricted cash, beginning of period

656

 

 

1,296

 

Cash, cash equivalents and restricted cash, beginning of period

7,958

 

 

6,784

 

Cash and cash equivalents, end of period

3,028

 

 

15,077

 

Restricted cash, end of period

1,384

 

 

1,850

 

Cash, cash equivalents and restricted cash, end of period

$

4,412

 

 

$

16,927

 

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS

(In thousands)

(Unaudited)

This press release contains non-GAAP financial measures as defined by the rules and regulations of the United States Securities and Exchange Commission. A non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations or balance sheets of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are included in the attached financial tables.

These non-GAAP financial measures are provided because management of the Company uses these financial measures in maintaining and evaluating the Company’s ongoing financial results and trends. Management uses this non-GAAP information as an indicator of business results, and evaluates overall performance with respect to such indicators. Management believes that excluding items such as acquisition expenses, amortization of intangible assets, stock-based compensation, asset impairments, restructuring charges, expenses related to litigation and resolution of lawsuits, and other charges, which may or may not be non-recurring, among other items that are inconsistent in amount and frequency (as with acquisition expenses), or determined pursuant to complex formulas that incorporate factors, such as market volatility, that are beyond our control (as with stock-based compensation), for purposes of calculating these non-GAAP financial measures facilitates a more meaningful evaluation of the Company’s current operating performance and comparisons to the past and future operating performance. The Company believes that providing non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted net income (loss), and adjusted net income (loss) per share, in addition to related GAAP financial measures, provides investors with greater transparency to the information used by the Company’s management. These non-GAAP financial measures are not substitutes for measures of performance or liquidity calculated in accordance with GAAP and may not necessarily be indicative of the Company’s liquidity or ability to fund cash needs. Not all companies calculate non-GAAP financial measures in the same manner, and our presentation may not be comparable to the presentations of other companies.

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS (continued)

(In thousands)

(Unaudited)

 

Reconciliation of Net loss to EBITDA and Total Adjusted EBITDA:

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

Net loss

$

(6,052

)

 

$

(7,117

)

 

$

(17,413

)

 

$

(50,460

)

Depreciation and amortization

8,928

 

 

10,018

 

 

27,340

 

 

36,731

 

Interest expense, net

1,279

 

 

1,241

 

 

3,997

 

 

3,695

 

Income tax expense

46

 

 

69

 

 

171

 

 

69

 

EBITDA

4,201

 

 

4,211

 

 

14,095

 

 

(9,965

)

Adjustments:

 

 

 

 

 

 

 

Transaction-related costs, net

65

 

 

393

 

 

(86

)

 

445

 

Stock-based compensation

325

 

 

98

 

 

1,740

 

 

11,492

 

Change in fair value of derivative warrant liability

(4

)

 

(34

)

 

(32

)

 

(323

)

Reorganization items, net [1]

(10

)

 

(137

)

 

200

 

 

1,609

 

Legal and environmental costs, net

 

 

(81

)

 

53

 

 

(452

)

Impairment of long-lived assets

120

 

 

100

 

 

237

 

 

4,563

 

Restructuring, exit and other costs

(4

)

 

49

 

 

(10

)

 

1,117

 

Gain on sale of UGSI

 

 

 

 

 

 

(75

)

Executive and severance costs

 

 

 

 

 

 

2,937

 

Gain on disposal of assets

(122

)

 

(665

)

 

(1,828

)

 

(919

)

Total Adjusted EBITDA

$

4,571

 

 

$

3,934

 

 

$

14,369

 

 

$

10,429

 

[1] Reorganization items, net represents the costs related to the chapter 11 filing incurred after the May 1, 2017 filing date.

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS (continued)

(In thousands)

(Unaudited)

 

Reconciliation of QTD Segment Performance to Adjusted EBITDA

Three months ended September 30, 2019

 

Rocky Mountain

 

Northeast

 

Southern

 

Corporate

 

Total

Revenue

 

$

27,996

 

 

$

10,605

 

 

$

4,497

 

 

$

 

 

$

43,098

 

Direct operating expenses

 

22,023

 

 

8,750

 

 

3,524

 

 

 

 

34,297

 

General and administrative expenses

 

1,377

 

 

647

 

 

72

 

 

2,678

 

 

4,774

 

Depreciation and amortization

 

4,191

 

 

2,667

 

 

2,063

 

 

7

 

 

8,928

 

Operating income (loss)

 

285

 

 

(1,459

)

 

(1,158

)

 

(2,685

)

 

(5,017

)

Operating margin %

 

1.0

%

 

(13.8

)%

 

(25.8

)%

 

N/A

 

(11.6

)%

Income (loss) before income taxes

 

136

 

 

(1,355

)

 

(1,215

)

 

(3,572

)

 

(6,006

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

136

 

 

(1,355

)

 

(1,215

)

 

(3,618

)

 

(6,052

)

Depreciation and amortization

 

4,191

 

 

2,667

 

 

2,063

 

 

7

 

 

8,928

 

Interest expense, net

 

192

 

 

129

 

 

57

 

 

901

 

 

1,279

 

Income tax expense

 

 

 

 

 

 

 

46

 

 

46

 

EBITDA

 

$

4,519

 

 

$

1,441

 

 

$

905

 

 

$

(2,664

)

 

$

4,201

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments, net

 

204

 

 

(134

)

 

(76

)

 

376

 

 

370

 

Adjusted EBITDA

 

$

4,723

 

 

$

1,307

 

 

$

829

 

 

$

(2,288

)

 

$

4,571

 

Adjusted EBITDA margin %

 

16.9

%

 

12.3

%

 

18.4

%

 

N/A

 

10.6

%

Three months ended September 30, 2018

 

Rocky Mountain

 

Northeast

 

Southern

 

Corporate

 

Total

Revenue

 

$

33,399

 

 

$

11,247

 

 

$

5,010

 

 

$

 

 

$

49,656

 

Direct operating expenses

 

25,757

 

 

10,372

 

 

3,624

 

 

 

 

39,753

 

General and administrative expenses

 

1,605

 

 

442

 

 

106

 

 

3,696

 

 

5,849

 

Depreciation and amortization

 

5,698

 

 

1,976

 

 

2,331

 

 

13

 

 

10,018

 

Operating income (loss)

 

339

 

 

(1,543

)

 

(1,200

)

 

(3,709

)

 

(6,113

)

Operating margin %

 

1.0

%

 

(13.7

)%

 

(24.0

)%

 

N/A

 

(12.3

)%

Income (loss) before income taxes

 

372

 

 

(1,628

)

 

(1,240

)

 

(4,552

)

 

(7,048

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

372

 

 

(1,636

)

 

(1,246

)

 

(4,607

)

 

(7,117

)

Depreciation and amortization

 

5,698

 

 

1,976

 

 

2,331

 

 

13

 

 

10,018

 

Interest expense, net

 

102

 

 

85

 

 

40

 

 

1,014

 

 

1,241

 

Income tax expense

 

 

 

8

 

 

6

 

 

55

 

 

69

 

EBITDA

 

$

6,172

 

 

$

433

 

 

$

1,131

 

 

$

(3,525

)

 

$

4,211

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments, net

 

(203

)

 

(264

)

 

(130

)

 

320

 

 

(277

)

Adjusted EBITDA

 

$

5,969

 

 

$

169

 

 

$

1,001

 

 

$

(3,205

)

 

$

3,934

null