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05.11.2015 13:05
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Nuverra Reports Third Quarter And Year-To-Date 2015 Results
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PR Newswire
SCOTTSDALE, Ariz., Nov. 5, 2015
SCOTTSDALE, Ariz., Nov. 5, 2015 /PRNewswire/ -- Nuverra Environmental Solutions, Inc. (NYSE: NES) ("Nuverra" or the "Company") announced financial and operating results today for the third quarter and nine months ended September 30, 2015.
SUMMARY OF THIRD-QUARTER RESULTS
- Revenue from continuing operations was $76.5 million, a decrease of $63.1 million, or 45.2% from the third quarter of 2014. On a sequential comparison with the second quarter, revenue decreased 17.2%.
- Excluding special items, third-quarter net loss from continuing operations was $22.5 million, or a loss of $0.81 per diluted share, compared with a net loss of $6.3 million, or a loss of $0.24 per diluted share, in the third quarter of 2014. Reported third-quarter net loss from continuing operations was $128.1 million, or a loss of $4.61 per share, compared with a net loss from continuing operations of $99.4 million, or a loss of $3.73 per share in the third quarter of 2014.
- Special items included a non-cash goodwill impairment charge recorded in the third quarter of $104.7 million. This accounting impairment was triggered by commodity price declines and a reduction in the market price of the Company's common stock.
- Adjusted EBITDA from continuing operations was $6.3 million, a decrease of $21.8 million, or 77.7% from the third quarter of 2014.
- Year-to-date net cash provided by operating activities from continuing operations for the period ended September 30, 2015 was $55.7 million; year-to-date free cash flow was $51.4 million. This reflects significant cost reductions, which contributed to lower year-over-year costs and expenses excluding special items of $46.6 million, or 34.9%, compared with the third quarter of 2014. Year-to-date, total costs and expenses excluding special items were down $85.5 million, or 22.0% compared with 2014.
- Reached agreement with banks to amend credit facility on November 2, 2015, reducing lender commitments to $125.0 million and providing for carve-out of midstream subsidiary to advance transformative water infrastructure investments.
Mark D. Johnsrud, Chairman of the Board and Chief Executive Officer, commented, "The third quarter saw volume and pricing headwinds as customers reduced drilling and completion activities. To position the company to weather these trends, which we expect to continue into 2016, we continued to focus on our cost-management and efficiency initiatives with a goal of operating within our cash flow as we work to complete the next steps to transform our business.
"In the recent amendments to our credit facility, our banks agreed to carve out our midstream subsidiary from our corporate capital structure. This is an important step toward advancing our long-term midstream strategy because it opens the door to project-level financing. Our objective is to seek long-term customer contracts that can reduce our overall economic exposure to fluctuations in commodity prices and well-activity levels."
THIRD-QUARTER 2015 RESULTS
Third-quarter 2015 revenue from continuing operations was $76.5 million, a decrease of approximately $63.1 million or 45.2%, compared with third-quarter 2014 revenue from continuing operations of $139.6 million. The decrease was primarily related to declines in overall customer drilling and completion activities and service pricing erosion, both of which drove lower revenue from water logistics, salt water disposal, solids management and rental services, offset in part by higher revenue related to salt water recycling services in the Northeast Division.
Adjusted for special items, total costs and expenses were down 34.9% compared with the third quarter of 2014. These reductions included approximately $17 million in lower payroll and related expenses, approximately $8 million in fuel savings, and approximately $5 million in lower depreciation and amortization expense, with the remainder related primarily to reductions in all other direct operating costs. Total costs and expenses excluding special items were down 22.0% in the first nine months of 2015 compared with the same period in 2014.
During the third quarter, continued declines in global crude oil prices, coupled with a reduction in the market price of the Company's common stock, required the Company to record a pre-tax, non-cash goodwill impairment charge of $104.7 million.
Excluding special items, third-quarter net loss from continuing operations was $22.5 million, or a loss of $0.81 per diluted share, compared with net loss of $6.3 million, or a loss of $0.24 per diluted share, in the third quarter of 2014. Reported third-quarter net loss from continuing operations was $128.1 million, or a loss of $4.61 per share, compared with a net loss from continuing operations of $99.4 million, or a loss of $3.73 per share in the third quarter of 2014.
Third-quarter adjusted EBITDA from continuing operations was $6.3 million, a 77.7% decrease compared with adjusted EBITDA from continuing operations of $28.0 million in the third quarter of 2014. Third-quarter adjusted EBITDA margin was 8.2%, compared with 20.1% for the third quarter of 2014. The year-over-year margin variance was due primarily to lower overall revenues associated with reduced customer drilling and completion-related activities, offset in part by lower total costs and expenses.
YEAR-TO-DATE RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 ("YTD")
YTD revenue from continuing operations was $288.1 million, a decrease of $106.5 million or 27.0%, compared with $394.5 million for the same period in 2014. The decrease was primarily related to significant overall declines in customer drilling and completion activities during the period. These declines resulted in lower revenues for water logistics, solids management and rentals in the Rocky Mountain Division and a reduction in water logistics and fresh water transfer services in the Southern Division, offset in part by increases in revenue related to water logistics and salt water recycling services in the Northeast Division.
Excluding special items, YTD net loss from continuing operations was $52.3 million, or a loss of $1.89 per diluted share, compared with a loss of $29.3 million, or a loss of $1.14 per diluted share, for the same period in 2014. Reported YTD net loss from continuing operations was $160.8 million, or a loss of $5.82 per diluted share, compared with a loss of $136.1 million, or a loss of $5.28 per diluted share, for the same period in 2014.
Adjusted EBITDA from continuing operations for the YTD period was $37.3 million and a margin of 12.9%, compared with adjusted EBITDA from continuing operations of $69.8 million and a margin of 17.7% for the same period in 2014. The year-over-year margin variance was due primarily to lower overall revenues associated with reduced customer drilling and completion-related activities, offset in part by lower total costs and expenses.
CASH & LIQUIDITY
Net cash provided by operating activities from continuing operations through September 30, 2015 was $55.7 million. Year-to-date net cash capital expenditures from continuing operations (or purchases of property, plant and equipment net of proceeds received from sales of property, plant and equipment) were $4.2 million. The Company generated $51.4 million in free cash flow for the nine-month period.
As of September 30, 2015, total debt outstanding, excluding $0.5 million of discounts and premiums, was $522.3 million, consisting of $400.0 million of 2018 Notes, $101.8 million outstanding under the revolving credit facility, and $20.5 million in capital leases and notes payable.
On November 2, 2015, the Company amended its credit facility following a periodic redetermination of its borrowing base, reducing lender commitments to $125.0 million from $195.0 million, reflecting lower appraisal values for machinery and equipment used in determining the borrowing base. As of November 2, 2015, after giving effect to the amendment and appraisal, $101.8 million was outstanding under the credit facility and estimated availability under the facility was less than $5 million, net of required reserves, with cash on hand of approximately $31.6 million.
Additionally, as the Company prepared for next steps in its water infrastructure investment strategy, the amendment releases Nuverra Rocky Mountain Pipeline, LLC ("RMP"), a wholly-owned subsidiary of the Company, from all obligations under the credit facility, including as guarantor and a grantor under the guaranty and security agreement to the credit facility. The agreement with the banks releases all liens on the assets of RMP and equity interests in RMP to the extent they are transferred to a third-party investor and establishes a separate permitted investment basket allowing for additional aggregate investments of up to $5.0 million in RMP. The Company concurrently designated RMP as an Unrestricted Subsidiary under the indenture governing its 9.875% Senior Notes due 2018 and removing RMP as a guarantor thereunder.
DIVISION RESULTS SUMMARY
| Three Months Ended September 30, 2015 | | Rocky Mountain | | Northeast | | Southern | | Corporate | | Total |
| Revenue | | $ 41,325 | | $ 19,825 | | $ 15,378 | | $ - | | $ 76,528 |
| Operating loss | | (104,710) | | (1,421) | | (4,441) | | (5,497) | | (116,069) |
| Operating Margin % | | (253.4%) | | (7.2%) | | (28.9%) | | NA | | (151.7%) |
| Adjusted EBITDA | | 8,442 | | 2,606 | | 740 | | (5,524) | | 6,264 |
| Adjusted EBITDA Margin % | | 20.4% | | 13.1% | | 4.8% | | NA | | 8.2% |
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| Three Months Ended September 30, 2014 | | Rocky Mountain | | Northeast | | Southern | | Corporate | | Total |
| Revenue | | $ 87,596 | | $ 25,759 | | $ 26,288 | | $ - | | $ 139,643 |
| Operating income (loss) | | 14,112 | | (33,917) | | (68,217) | | (2,775) | | (90,797) |
| Operating Margin % | | 16.1% | | (131.7%) | | (259.5%) | | NA | | (65.0%) |
| Adjusted EBITDA | | 27,439 | | 4,063 | | 2,292 | | (5,760) | | 28,034 |
| Adjusted EBITDA Margin % | | 31.3% | | 15.8% | | 8.7% | | NA | | 20.1% |
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| Nine Months Ended September 30, 2015 | | Rocky Mountain | | Northeast | | Southern | | Corporate Werbung Mehr Nachrichten zur Nuverra Environmental Solutions Aktie kostenlos abonnieren
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