Nuverra Announces Fourth-Quarter, Full-Year 2015 Results

The Company realized significant reductions in total costs and expenses throughout 2015, driven by two primary factors:  the overall decline in market activities driving down variable costs and actions taken by the Company to proactively reduce costs and expenses.  Fourth-quarter total costs and expenses, adjusted for special items, were $78.5 million, a 43% decrease compared with the fourth quarter of 2014. Reductions included approximately $23.8 million in lower variable payroll and related expenses, approximately $8.8 million in fuel reductions, and approximately $4.0 million in lower depreciation and amortization expense, with the balance due to reductions in all other direct operating costs. For the full year, total costs and expenses adjusted for special items were $381.9 million, a reduction of $145.9 million, or nearly 28%, compared with 2014.

Excluding special items, fourth-quarter loss from continuing operations was $21.8 million, or a loss of $0.79 per diluted share, compared with loss from continuing operations of $9.6 million, or a loss of $0.35 per diluted share in the fourth quarter of 2014. Reported fourth-quarter loss from continuing operations was $34.4 million, or a loss of $1.24 per share, compared with a loss from continuing operations of $321.1 million, or a loss of $11.84 per share in the fourth quarter of 2014. Special items for the fourth quarter primarily consisted of approximately $9.9 million in restructuring and other exit-related costs and approximately $1.1 million related to the write off of a portion of unamortized deferred financing costs associated with the Company's amended asset-based revolving credit facility. Special items affecting 2014 fourth-quarter results primarily consisted of non-cash impairment charges of $203.3 million for goodwill and $112.4 million for long-lived assets.

Adjusted EBITDA from continuing operations for the fourth quarter was $8.2 million, an increase of $2.0 million, or 31%, sequentially from $6.2 million in the third-quarter. Fourth-quarter adjusted EBITDA margin was 12.0%, compared with a margin of 8.2% in the third quarter. The improvement was primarily due to decreased insurance and compensation costs, and lower bad debt expense. On a year-over-year comparison, adjusted EBITDA from continuing operations was down 68% compared with the fourth quarter of 2014.

2015 FULL-YEAR RESULTS

Revenue for the full year was $356.7 million, or a decline of 34%, when compared with $536.3 million in 2014. The decrease was largely driven by the continuous slowing throughout the year in customer drilling and completion activities in all operating basins, coupled with service pricing pressures and the extended holiday slowdown that impacted the fourth quarter.

Excluding special items, 2015 loss from continuing operations was $73.8 million, or a loss of $2.67 per diluted share, compared with a loss from continuing operations of $40.7 million, or a loss of $1.56 per diluted share, for the same period in 2014. Reported loss from continuing operations for the year was $195.2 million, or a loss of $7.05 per diluted share, compared with a loss of $457.2 million, or a loss of $17.52 per diluted share in 2014.  Special items for the full year primarily consisted of non-cash charges of $104.7 million for goodwill impairment, approximately $11.1 million in restructuring and other exit-related costs, and approximately $2.1 million related to the write off of a portion of unamortized deferred financing costs associated with the amended asset-based revolving credit facility. Special items in 2014 primarily consisted of non-cash impairment charges of $304.0 million for goodwill and $112.4 million for long-lived assets.

2015 adjusted EBITDA from continuing operations was $45.9 million, with a margin of 12.9%, compared with $95.2 million, with a margin of 17.8%, in 2014. The year-over-year decline was related primarily to the effects of significantly lower customer drilling and completion activities coupled with continuous service pricing pressures, which drove lower revenue, offset in part by reductions in total costs and expenses.

CASH & LIQUIDITY

Net cash provided by operating activities from continuing operations through December 31, 2015 was $49.8 million, with net cash capital expenditures from continuing operations of $6.5 million for the year. The Company generated $43.4 million in free cash flow for the year, compared with a use of cash of $28.2 million in 2014.

At December 31, 2015, total debt outstanding, excluding $0.4 million in premiums and discounts, was $520.2 million, consisting of $400 million of 2018 Notes, $101.8 million outstanding under the asset-backed revolving credit facility, and $18.8 million in capital leases and notes payable.

The Company made principal payments on the revolving credit facility totaling $20.0 million during January and February 2016, following the periodic appraisal of the borrowing base, resulting in $81.8 million principal outstanding as of February 29, 2016. The Company had $20.7 million cash on hand and $0.7 million of net availability remaining under the facility as of February 29, 2016.

The Company further disclosed that its audited consolidated financial statements for the fiscal year ended December 31, 2015 included in the Company's Annual Report on Form 10-K, which was filed today with the Securities and Exchange Commission, contained an explanatory paragraph regarding its ability to continue as a going concern from its independent registered public accounting firm. On March 10, 2016, lenders under the revolving credit facility amended certain terms of the facility and consented to the inclusion of a going concern qualification or exception in the Company's 2015 audited financials. The Company remains current with all payment obligations due on its outstanding debt.

DIVISION RESULTS OVERVIEW

Three Months Ended December 31, 2015		Rocky Mountain		Northeast		Southern		Corporate		Total
Revenue		$              37,685		$   17,586		$  13,361		$          -		$   68,632
Operating loss		(4,634)		(2,400)		(9,499)		(4,916)		(21,449)
Operating Margin %		(12.3%)		(13.6%)		(71.1%)		NA		(31.3%)
Adjusted EBITDA		8,520		2,484		1,282		(4,077)		8,209
Adjusted EBITDA Margin %		22.6%		14.1%		9.6%		NA		12.0%
Three Months Ended December 31, 2014		Rocky Mountain		Northeast		Southern		Corporate		Total
Revenue		$              87,789		$   28,159		$  25,815		$          -		$ 141,763
Operating loss		(302,678)		(1,219)		(3,166)		(2,803)		(309,866)
Operating Margin %		(344.8%)		(4.3%)		(12.3%)		NA		(218.6%)
Adjusted EBITDA		25,781		2,859		1,526		(4,773)		25,393
Adjusted EBITDA Margin %		29.4%		10.2%		5.9%		NA		17.9%
Year Ended December 31, 2015		Rocky Mountain		Northeast		Southern		Corporate		Total 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 16.06.24 - dpa-AFX WDH/ROUNDUP/Schicksalswochen der Ampel: Beim Haushalt geht es jetzt ums Ganze 16.06.24 - Jörg Schulte Volatility, get to stay...?: Wochenrückblick KW 24-2024 - Zwischen KI-Boom und politischen Turbulenzen 16.06.24 - dpa-AFX Krankenhausgesellschaft NRW erwartet Einschnitte durch Klinikreform