Nuverra Announces Fourth Quarter And Full Year 2017 Results

Net loss for the fourth quarter was $30.9 million, a reduction of $30.4 million when compared with a net loss of $61.3 million in the fourth quarter of 2016.  For the fourth quarter of 2017, the Company reported a net loss from continuing operations, adjusted for special items, of $17.3 million. Special items in the fourth quarter primarily included the loss on the sale of underutilized assets, non-recurring legal and professional fees, stock-based compensation expense, as well as $2.5 million in long-lived asset impairment charges for assets held for sale in the Rocky Mountain division.  This compares with a loss from continuing operations, adjusted for special items, of $26.0 million in the fourth quarter of 2016.

Adjusted EBITDA from continuing operations for the fourth quarter was $5.1 million, an increase of $2.6 million compared with $2.5 million in the fourth quarter of 2016.  Fourth quarter adjusted EBITDA margin from continuing operations was 11.1%, compared with 7.1% in the fourth quarter of 2016.

FULL YEAR 2017 RESULTS

Revenue for the year was $176.1 million, an increase of $23.9 million, or 15.7%, when compared with $152.2 million for 2016.  Due to oil prices becoming more stable in 2017, customer demand for our services increased in all divisions in which we operate as compared to the same period in the prior year.  Approximately 3.9% of the increase in revenue is attributable to pricing increases, while 11.8% is a result of increases in activities.

As a result of the application of fresh start accounting upon emergence from chapter 11, net income for the full year was $120.7 million, compared to a net loss of $168.9 million in the prior year.  Net loss from continuing operations for the year, adjusted for special items, was $79.6 million, compared with a loss of $108.0 million for 2016.  Year-to-date special items primarily included $218.0 million of capital reorganization costs incurred in connection with the application of fresh start accounting and after emergence from chapter 11 recorded to "Reorganization items, net."  Additionally, special items included the loss on the sale of underutilized assets, stock-based compensation expense, a $4.3 million gain on the change in fair value of the derivative warrant liability, and $4.9 million in long-lived asset impairment charges for assets held for sale in the Rocky Mountain and Southern divisions.

Adjusted EBITDA from continuing operations for the full year was $13.3 million, an increase of 70.0% when compared with 2016.  Adjusted EBITDA margin from continuing operations for 2017 was 7.6%, compared with 5.2% in 2016.

CASH FLOW AND LIQUIDITY

Net cash used in operating activities from continuing operations for the full year ended December 31, 2017 was $25.4 million, while asset sales net of capital expenditures from continuing operations provided proceeds of $1.7 million.

Total liquidity as of December 31, 2017, consisting of cash and cash equivalents, available borrowings under our senior secured revolving credit facility and a delayed draw available on our second lien term loan facility, was $20.5 million.  As of December 31, 2017, total debt outstanding was $39.1 million, consisting of $14.3 million under our senior secured term loan facility, $21.0 million under our second lien term loan facility, and $3.8 million of capital leases for vehicle financings.

BASIS OF PRESENTATION

As previously disclosed, the Company emerged from chapter 11 bankruptcy on August 7, 2017, or the "Effective Date," and elected to apply fresh start accounting as of July 31, 2017 to coincide with the timing of the normal accounting period close.  References to "Successor" relate to the financial position and results of operations of the reorganized Company subsequent to July 31, 2017, while references to "Predecessor" refer to the financial position and results of operations of the Company on and prior to July 31, 2017.  The Successor and Predecessor GAAP results for the applicable periods are presented in the tables following this release.

For discussion purposes, the Company has combined the Successor and Predecessor periods to derive combined results for the year ended December 31, 2017.  However, because of various adjustments to the condensed consolidated financial statements in connection with the application of fresh start accounting, the results of operations for the Successor period are not comparable to those of the Predecessor period.  The Company believes that, subject to consideration of the impact of fresh start accounting, combining the results of the Successor and Predecessor periods provides meaningful information about the financial results of the Company, including revenues and costs that assist a reader in understanding the financial results for the applicable periods.

About Nuverra

Nuverra Environmental Solutions, Inc. is among the largest companies in the United States dedicated to providing comprehensive, full-cycle environmental solutions to customers in the energy market. Nuverra focuses on the delivery, collection, treatment, and disposal of restricted solids, water, wastewater, waste fluids, and hydrocarbons. The Company provides its suite of environmentally compliant and sustainable solutions to customers who demand stricter 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, 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: the effects of the restructuring on the Company and the interests of various constituents; risks and uncertainties associated with the restructuring process, including the outcome of a pending appeal of the order confirming the plan of reorganization and our ability to execute the requirements of the plan of reorganization subsequent to the Effective Date; our inability to maintain relationships with suppliers, customers, employees and other third parties as a result of our chapter 11 filing; the length of time the Company will operate under chapter 11 protection; risks associated with our indebtedness, including changes to interest rates, deterioration in the value of our machinery and equipment or accounts receivables, our ability to manage our liquidity needs and to comply with covenants under our credit facilities; our ability to attract, motivate and retain key executives and qualified employees in key areas of our business, including as a result of our completed chapter 11 restructuring; 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, 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; 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 the downturn in our industry, our financial condition and the chapter 11 proceeding, including more stringent or costly payment terms from our vendors, which may further constrain our liquidity and reduce availability under our revolving credit facility; risks associated with our capital structure, including our ability to access necessary funding to generate sufficient operating cash flow to meet our debt service obligations; risks associated with the limited trading volume of our common stock on the NYSE American Stock Exchange, including fluctuations in the trading prices of our common stock; present and possible future claims, litigation or enforcement actions or investigations and their potential impact; difficulties in identifying, negotiating, executing, and completing acquisitions and divestitures, in connection with our strategic initiatives, and differences in the type and availability of consideration or financing for such acquisitions and divestitures; difficulties in successfully executing our growth initiatives, including difficulties in permitting, financing and constructing pipelines and waste treatment assets and in structuring economically viable agreements with potential customers, joint venture partners, financing sources and other parties; pricing pressures; risks associated with the operation, construction and development of saltwater disposal wells, solids and liquids treatment and transportation assets, landfills and pipelines, including access to additional locations and rights-of-way, 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; risks associated with new technologies and the impact on our business; current and projected future uncertainties in commodities markets, including low oil and/or natural gas prices, and the potential impact on our ability to collect outstanding receivables as a result of the liquidity constraints on our customers; changes in customer drilling and completion activities and capital expenditure plans; 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; shifts in production in shale areas where we operate and/or shale areas where we currently do not have operations; control of costs and expenses; and the regulatory environment.

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.

Source: Nuverra Environmental Solutions, Inc.
602-903-7802
ir@nuverra.com

- Tables to Follow -

NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
	Successor					Predecessor
	Three Months Ended					Three Months Ended
	December 31,					December 31,
	2017					2016
Revenue:
Service revenue	$	41,775				$	32,348
Rental revenue	4,655					3,434
Total revenue	46,430					35,782
Costs and expenses:
Direct operating expenses	40,967					28,602
General and administrative expenses	5,687					9,034
Depreciation and amortization	21,230					14,693
Impairment of long-lived assets	2,500					31,712
Total costs and expenses	70,384					84,041
Loss from operations	(23,954)					(48,259)
Interest expense, net	(1,409)					(13,856)
Other income, net	117					754
Reorganization items, net	(6,037)					—
Loss before income taxes	(31,283)					(61,361)
Income tax benefit	381					45
Net loss	$	(30,902)				$	(61,316)
Earnings per common share:
Net loss per basic common share	$	(2.64)				$	(0.45)
Net loss per diluted common share	$ Werbung Mehr Nachrichten zur Nuverra Environmental Solutions Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 12:00 - Julius Weiß, ... Wochenrückblick – Zinsfantasien und überzeugende Zahlen der deutschen Banken und Versicherer 08:00 - bullvestor Top-Level-News: NurExone Biologic – Jetzt kommt der “Bluechip”-Mann an Bord! 17.05.24 - ARIVA.DE Redaktion Aktienmarkt: Aktie von Nike tritt auf der Stelle (84,5135 €)