Nuverra Environmental Solutions, Inc. (NYSE American: NES)
(“Nuverra” or the “Company”) today announced financial and
operating results for the first quarter ended March 31, 2021.
SUMMARY OF FINANCIAL RESULTS
- Revenue for the first quarter of 2021 was $23.7 million
compared to $37.9 million for the first quarter of 2020.
- Net loss for the first quarter of 2021 was $7.6 million
compared to a net loss of $23.0 million for the first quarter of
2020, primarily as a result of $15.6 million of long-lived asset
impairment charges in 2020.
- Adjusted EBITDA for the first quarter of 2021 was a loss of
$0.8 million compared to a profit of $1.9 million for the first
quarter of 2020, driven by activity declines year over year
partially offset by meaningful fixed and variable cost
reductions.
- During the three months ended March 31, 2021, the Company
generated net cash used in operating activities of $0.8
million.
- Total liquidity available as of March 31, 2021 was $15.6
million including $5.0 million available under the Company’s
undrawn operating line of credit.
- Principal payments on debt and finance lease payments during
the three months ended March 31, 2021 totaled $0.8 million.
- The Company invested $0.6 million in gross capital expenditures
during the first quarter of 2021.
FIRST QUARTER 2021 RESULTS
For the first quarter of 2021 when compared to the first quarter
of 2020, revenue decreased by 38%, or $14.3 million, resulting
primarily from lower water transport services in the Rocky Mountain
and Northeast divisions and lower disposal services in all three
divisions. Despite an increase in the average commodity prices for
both crude oil and natural gas quarter over quarter, which
increased 28% and 83%, respectively, over this time, our customers
have been limiting their activities, which reduced production
volumes. The reduced demand for gasoline, diesel and jet fuel has
led to lower drilling and completion activity with fewer rigs
operating in all three divisions. Rig count at the end of the first
quarter of 2021 compared to the end of the first quarter of 2020
declined 77% in the Rocky Mountain division, 26% in the Northeast
division and 4% in the Southern division.
The Rocky Mountain division experienced a significant slowdown
as compared to the prior year, as evidenced by the rig count
declining 77% from 52 at March 31, 2020 to 12 at March 31, 2021.
Although there was a notable increase in WTI crude oil price per
barrel, which averaged $58.09 in the first quarter of 2021 versus
an average of $45.34 for the same period in 2020, new drilling and
completion activities have been very low, causing total production
levels to decline over time as existing wells fell down. Revenues
for the Rocky Mountain division decreased by $10.7 million, or 46%,
during the three months ended March 31, 2021 as compared to the
three months ended March 31, 2020, primarily due to a $4.7 million,
or 33%, decrease in water transport revenues from lower trucking
volumes. Revenue from company-owned trucking revenue declined 33%,
or $3.4 million and third-party trucking revenue decreased 20%, or
$0.7 million, and water transfer revenue decreased $0.6 million or
99%. Company-owned trucking activity is more levered to production
water volumes, and third-party trucking activity is more sensitive
to drilling and completion activity, which has declined to
historically low levels. This decline was also materialized by a
reduction of driver count, along with other factors cited above,
resulted in meaningful revenue reduction. Our rental and landfill
businesses are our two service lines most levered to drilling
activity, and therefore have declined by a higher percentage versus
the prior period. Rental revenues decreased by 61%, or $2.1
million, in the current year due to lower utilization resulting
from a significant decline in drilling activity driving the return
of rental equipment. Our landfill revenues decreased 97%, or $1.4
million, compared to prior year due primarily to a 98% decrease in
disposal volumes at our landfill as rigs working in the vicinity
declined materially. Due to the fact that our landfill was over
capacity, we turned away some orders, besides the basic required
orders. Also, we delayed the expansion of our landfill because of
the market conditions, but we expect to expand our landfill
capacity during the remainder of 2021. Our salt water disposal well
revenue decreased $1.1 million, or 46%, compared to prior year as
lower completion activity and lower production volumes led to a 44%
decrease in average barrels per day disposed during the current
year largely as a result of the trend of operators transporting
water to disposal wells via pipeline. Other revenue, which derives
from the sale of “junk” or “slop” oil obtained through the skimming
of disposal water, decreased by $1.3 million.
Revenues for the Northeast division decreased by $2.5 million,
or 25%, during the first quarter of 2021 as compared to the first
quarter of 2020 due to decreases in water transport services of
$1.8 million, or 25%, and disposal services of $0.4 million, or
19%. Although natural gas prices per million Btu, as measured by
the Henry Hub Natural Gas Index, increased 83.2% from an average of
$1.91 for the three months ended March 31, 2020 to an average of
$3.50 for the three months ended March 31, 2021, producers
continued their drilling activities at historical low levels. The
limited new drilling activities caused a 26% rig count reduction in
the Northeast operating area from 50 at March 31, 2020 to 37 at
March 31, 2021. Additionally, although there was a 28% increase in
WTI crude oil prices compared to the prior year, many of our
customers who have historically focused on production of
liquids-rich wells reduced activity levels in our operating area
due to lower realized prices for these products. This led to lower
activity levels for both water transport services and disposal
services despite the increase in natural gas prices and crude oil
prices. In addition to reduced drilling and completion activity,
our customers continued the industry trend of water reuse during
completion activities. Water reuse inherently reduces trucking
activity due to shorter hauling distances as water is being
transported between well sites rather than to disposal wells. For
our trucking services, revenues per billed hour decreased by 15%
which was a function of the increased competition and the operator
focus on reducing costs. The regional driver count declined
approximately 30% year over year which also contributed to the
lower revenue. The combination of a lower rig count, water reuse
and sharing and competition, contributed to the decline in disposal
volumes and pricing.
The Southern division experienced the lowest revenue decline
relative to the other business units, driven by its focus on
servicing customers who are themselves focused on dry natural gas,
which has experienced a relatively smaller impact from the 2020
downturn in commodity prices. Revenues for the Southern division
decreased by $1.1 million, or 24%, during the first quarter of 2021
as compared to the first quarter of 2020. The decrease was due
primarily to lower disposal well volumes, whether connected to the
pipeline or not, resulting from an activity slowdown in the region,
as evidenced by fewer rigs operating in the area as well as lower
revenue per barrel. Rig count declined 4% in the area, from 48 at
March 31, 2020 to 46 at March 31, 2021. Volumes received in our
disposal wells not connected to our pipeline decreased by an
average of 7,547 barrels per day (or 30%) during the current year
and volumes received in the disposal wells connected to the
pipeline decreased by an average of 10,230 barrels per day (or 27%)
during the current year.
Total costs and expenses for the first quarter of 2021 and 2020
were $30.6 million and $60.0 million, respectively. Total costs and
expenses, adjusted for special items, for the first quarter of 2021
were $30.5 million, or a 31% decrease, when compared with $44.1
million in the first quarter of 2020. This is primarily a result of
lower volumes and related costs in water transport services and
disposal services and company cost cutting initiatives implemented
during 2020, resulting in a 41% and 18% decrease in the number of
drivers compared to the prior year period in the Rocky Mountain and
Northeast divisions respectively. In addition, there were declines
in third-party hauling costs and fleet-related expenses, including
maintenance and repair costs and fuel, and general and
administrative expenses.
Net loss for the first quarter of 2021 was $7.6 million, a
decrease of $15.4 million as compared to a net loss for the first
quarter of 2020 of $23.0 million. For the first quarter of 2021,
the Company reported a net loss, adjusted for special items, of
$7.5 million. This compares with a net loss, adjusted for special
items, of $7.3 million in the first quarter of 2020.
Adjusted EBITDA for the first quarter of 2021 was a $0.8 million
loss, a decrease of 140.7% as compared to adjusted EBITDA for the
first quarter of 2020 of $1.9 million. The decrease is a function
of the reasons discussed previously, with primary drivers being
lower trucking volumes, salt water disposal volumes and rental
equipment utilization in the Rocky Mountain division. First quarter
of 2021 adjusted EBITDA margin was (3)%, compared with 5% in the
first quarter of 2020 driven primarily by declines in revenue
partially offset by cost reductions implemented throughout 2020
that still remained in place during the first quarter of 2021.
CASH FLOW AND LIQUIDITY
Net cash used in operating activities for the three months ended
March 31, 2021 was $0.8 million, mainly attributable to an increase
of $1.5 million in accounts receivable, while capital expenditures
net of asset sales consumed $0.5 million. Asset sales were related
to unused or underutilized assets. Gross capital expenditures for
the first quarter of $0.6 million primarily included the purchase
of property, plant and equipment as well as expenditures to extend
the useful life and productivity of our fleet, equipment and
disposal wells.
Total liquidity available as of March 31, 2021 was $15.6
million. This consisted of $10.6 million of cash and $5.0 million
available under our operating line of credit. As of March 31, 2021,
total debt outstanding was $33.5 million, consisting of $13.0
million under our equipment term loan, $9.8 million under our real
estate loan, $4.0 million under our Paycheck Protection Program
loan, $0.3 million under our vehicle term loan, $0.1 million for an
equipment term loan and $7.2 million of finance leases for vehicle
financings and real property leases, less $0.9 million of debt
issuance costs.
About Nuverra
Nuverra Environmental Solutions, Inc. provides 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, 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 severity, magnitude and duration of the coronavirus
disease 2019 ("COVID-19") pandemic and commodity market
disruptions; changes in commodity prices; 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, including as a result of
COVID-19 and oil price declines; the loss of one or more of our
larger customers; delays in customer payment of outstanding
receivables and customer bankruptcies; natural disasters, such as
hurricanes, earthquakes and floods, pandemics (including COVID-19),
acts of terrorism, or extreme weather conditions, that may impact
our business locations, assets, including wells or pipelines, or
distribution channels, or which otherwise disrupt our customers'
operations or the markets we serve; disruptions impacting crude oil
and natural gas transportation, processing, refining, and export
systems, including vacated easements, environmental impact studies,
forced shutdown by governmental agencies and litigation affecting
the Dakota Access Pipeline; bans on drilling and fracking leases
and permits on federal land; our ability to attract and retain key
executives and qualified employees in strategic areas of our
business; our ability to attract and retain a sufficient number of
qualified truck drivers; the unfavorable change to credit and
payment terms due to changes in industry condition or our financial
condition, which could constrain our liquidity and reduce
availability under our operating line of credit; higher than
forecasted capital expenditures to maintain and repair our fleet of
trucks, tanks, pipeline, equipment and disposal wells; our ability
to control 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, shut-in production, decline in operating drilling rigs,
closures or pending closures of third-party pipelines 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
the potential for a further appeal of the order confirming our
previously completed plan of reorganization; risks associated with
the reliance on third-party analyst and expert market projections
and data for the markets in which we operate that is utilized in
our business strategy; present and possible future claims,
litigation or enforcement actions or investigations; risks
associated with changes in industry practices and operational
technologies; risks associated with the operation, construction,
development and closure of salt water 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, and shifts to
reuse of water and water sharing in completion activities; the
unknown future impact of changes in laws and regulation on waste
management and disposal activities, including those impacting the
delivery, storage, collection, transportation, and disposal of
waste products, as well as the use or reuse of recycled or treated
products or byproducts; and 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 and transportation of liquid and
solid wastes.
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
March 31,
2021
2020
Revenue:
Service revenue
$
22,326
$
34,471
Rental revenue
1,339
3,471
Total revenue
23,665
37,942
Costs and expenses:
Direct operating expenses
20,981
31,476
General and administrative expenses
3,527
4,924
Depreciation and amortization
6,070
7,989
Impairment of long-lived assets
—
15,579
Other, net
—
—
Total costs and expenses
30,578
59,968
Operating loss
(6,913
)
(22,026
)
Interest expense, net
(678
)
(1,160
)
Other income (expense), net
(4
)
142
Reorganization items, net
(8
)
—
Loss before income taxes
(7,603
)
(23,044
)
Income tax expense
—
—
Net loss
$
(7,603
)
$
(23,044
)
Loss per common share:
Net loss per basic common share
$
(0.48
)
$
(1.46
)
Net loss per diluted common share
$
(0.48
)
$
(1.46
)
Weighted average shares outstanding:
Basic
15,877
15,754
Diluted
15,877
15,754
NUVERRA ENVIRONMENTAL
SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
March 31,
December 31,
2021
2020
Assets
Cash and cash equivalents
$
10,578
$
12,880
Restricted cash
2,990
2,820
Accounts receivable, net
16,788
15,427
Inventories
2,893
2,852
Prepaid expenses and other receivables
2,438
3,119
Other current assets
—
—
Assets held for sale
778
778
Total current assets
36,465
37,876
Property, plant and equipment, net
145,654
151,164
Operating lease assets
1,609
1,691
Equity investments
—
35
Intangibles, net
182
194
Other assets
88
106
Total assets
$
183,998
$
191,066
Liabilities and Shareholders’
Equity
Accounts payable
$
6,412
$
5,130
Accrued and other current liabilities
9,338
9,550
Current portion of long-term debt
2,338
2,433
Total current liabilities
18,088
17,113
Long-term debt
31,207
31,673
Noncurrent operating lease liabilities
1,303
1,360
Deferred income taxes
120
120
Long-term contingent consideration
500
500
Other long-term liabilities
8,184
8,017
Total liabilities
59,402
58,783
Commitments and contingencies
Shareholders’ equity:
Preferred stock
—
—
Common stock
161
158
Additional paid-in capital
339,793
339,663
Treasury stock
(694
)
(477
)
Accumulated deficit
(214,664
)
(207,061
)
Total shareholders’ equity
124,596
132,283
Total liabilities and shareholders’
equity
$
183,998
$
191,066
NUVERRA ENVIRONMENTAL
SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2021
2020
Cash flows from operating
activities:
Net loss
$
(7,603
)
$
(23,044
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
6,070
7,989
Amortization of debt issuance costs,
net
65
41
Stock-based compensation
133
290
Impairment of long-lived assets
—
15,579
Gain on disposal of property, plant and
equipment
(89
)
(100
)
Bad debt expense
89
—
Other, net
229
246
Changes in operating assets and
liabilities:
Accounts receivable
(1,450
)
3,790
Prepaid expenses and other receivables
681
199
Accounts payable and accrued
liabilities
1,130
2,139
Other assets and liabilities, net
(22
)
284
Net cash provided by (used in) operating
activities
(767
)
7,413
Cash flows from investing
activities:
Proceeds from the sale of property, plant
and equipment
89
176
Purchases of property, plant and
equipment
(612
)
(1,413
)
Net cash used in investing activities
(523
)
(1,237
)
Cash flows from financing
activities:
Payments on Commercial real estate
loan
(141
)
—
Payments on First and Second Lien Term
Loans
—
(823
)
Proceeds from Revolving Facility
—
43,281
Payments on Revolving Facility
—
(43,281
)
Payments on finance leases and other
financing activities
(701
)
(596
)
Net cash used in financing activities
(842
)
(1,419
)
Change in cash, cash equivalents and
restricted cash
(2,132
)
4,757
Cash and cash equivalents, beginning of
period
12,880
4,788
Restricted cash, beginning of period
2,820
922
Cash, cash equivalents and restricted
cash, beginning of period
15,700
5,710
Cash and cash equivalents, end of
period
10,578
9,888
Restricted cash, end of period
2,990
579
Cash, cash equivalents and restricted
cash, end of period
$
13,568
$
10,467
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
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
March 31,
2021
2020
Net loss
$
(7,603
)
$
(23,044
)
Depreciation and amortization
6,070
7,989
Interest expense, net
678
1,160
Income tax expense
—
—
EBITDA
(855
)
(13,895
)
Adjustments:
Stock-based compensation
133
290
Loss on equity investment
35
—
Reorganization items, net [1]
8
—
Transaction-related costs, net
5
(26
)
Legal and environmental costs, net
—
(118
)
Impairment of long-lived assets
—
15,579
Executive and severance costs
—
146
Gain on disposal of assets
(89
)
(100
)
Total Adjusted EBITDA
$
(763
)
$
1,876
NUVERRA ENVIRONMENTAL
SOLUTIONS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(continued)
(In thousands)
(Unaudited)
Reconciliation of QTD Segment Performance to Adjusted
EBITDA
Three months ended March 31,
2021
Rocky Mountain
Northeast
Southern
Corporate
Total
Revenue
$
12,789
$
7,306
$
3,570
$
—
$
23,665
Direct operating expenses
11,363
6,653
2,965
—
20,981
General and administrative expenses
921
359
158
2,089
3,527
Depreciation and amortization
2,312
2,355
1,392
11
6,070
Operating loss
(1,807
)
(2,061
)
(945
)
(2,100
)
(6,913
)
Operating margin %
(14.1
)
%
(28.2
)
%
(26.5
)
%
N/A
(29.2
)
%
Loss before income taxes
(1,960
)
(2,164
)
(996
)
(2,483
)
(7,603
)
Net loss
(1,960
)
(2,164
)
(996
)
(2,483
)
(7,603
)
Depreciation and amortization
2,312
2,355
1,392
11
6,070
Interest expense, net
149
103
51
375
678
Income tax expense
—
—
—
—
—
EBITDA
$
501
$
294
$
447
$
(2,097
)
$
(855
)
Adjustments, net
(54
)
—
—
146
92
Adjusted EBITDA
$
447
$
294
$
447
$
(1,951
)
$
(763
)
Adjusted EBITDA margin %
3.5
%
4.0
%
12.5
%
N/A
(3.2
)
%
Three months ended March 31,
2020
Rocky Mountain
Northeast
Southern
Corporate
Total
Revenue
$
23,468
$
9,794
$
4,680
$
—
$
37,942
Direct operating expenses
19,551
8,371
3,554
—
31,476
General and administrative expenses
1,489
634
270
2,531
4,924
Depreciation and amortization
3,465
2,551
1,969
4
7,989
Operating income (loss)
(13,220
)
(1,762
)
(4,509
)
(2,535
)
(22,026
)
Operating margin %
(56.3
)
%
(18.0
)
%
(96.3
)
%
N/A
(58.1
)
%
Income (loss) before income taxes
(13,255
)
(1,875
)
(4,563
)
(3,351
)
(23,044
)
Net income (loss)
(13,255
)
(1,875
)
(4,563
)
(3,351
)
(23,044
)
Depreciation and amortization
3,465
2,551
1,969
4
7,989
Interest expense, net
177
113
54
816
1,160
Income tax expense
—
—
—
—
—
EBITDA
$
(9,613
)
$
789
$
(2,540
)
$
(2,531
)
$
(13,895
)
Adjustments, net
12,185
(61
)
3,383
264
15,771
Adjusted EBITDA
$
2,572
$
728
$
843
$
(2,267
)
$
1,876
Adjusted EBITDA margin %
11.0
%
7.4
%
18.0
%
N/A
4.9
%
NUVERRA ENVIRONMENTAL
SOLUTIONS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(continued)
(In thousands)
(Unaudited)
Reconciliation of Special Items to Net Loss and to EBITDA
and Adjusted EBITDA
Three months ended March 31,
2021
As Reported
Special Items
As Adjusted
Revenue
$
23,665
$
—
$
23,665
Direct operating expenses
20,981
89
[A]
21,070
General and administrative expenses
3,527
(138
)
[B]
3,389
Total costs and expenses
30,578
(49
)
[C]
30,529
Operating loss
(6,913
)
49
[C]
(6,864
)
Net loss
(7,603
)
92
[C]
(7,511
)
Net loss
$
(7,603
)
$
(7,511
)
Depreciation and amortization
6,070
6,070
Interest expense, net
678
678
Income tax expense
—
—
EBITDA and Adjusted EBITDA
$
(855
)
$
(763
)
Description of 2021 Special
Items:
[A]
Special items primarily relate to the gain
on the sale of underutilized assets.
[B]
Primarily attributable to transaction fees
associated with debt financing and stock-based compensation
expense.
[C]
Primarily includes the aforementioned
adjustments.
NUVERRA ENVIRONMENTAL
SOLUTIONS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(continued)
(In thousands)
(Unaudited)
Reconciliation of Special Items to Net Loss and to EBITDA
and Adjusted EBITDA
Three months ended March 31,
2020
As Reported
Special Items
As Adjusted
Revenue
$
37,942
$
—
$
37,942
Direct operating expenses
31,476
(5
)
[D]
31,471
General and administrative expenses
4,924
(305
)
[E]
4,619
Total costs and expenses
59,968
(15,889
)
[F]
44,079
Operating loss
(22,026
)
15,889
[F]
(6,137
)
Net loss
(23,044
)
15,771
[G]
(7,273
)
Net loss
$
(23,044
)
$
(7,273
)
Depreciation and amortization
7,989
7,989
Interest expense, net
1,160
1,160
Income tax expense
—
—
EBITDA and Adjusted EBITDA
$
(13,895
)
$
1,876
Description of 2020 Special
Items:
[D]
Special items primarily relate to the gain
on the sale of underutilized assets.
[E]
Primarily attributable to stock-based
compensation, severance costs and reversal of certain prior year
transaction costs related to the exploration of strategic
opportunities.
[F]
Primarily includes the aforementioned
adjustments along with long-lived asset impairment charges of $15.6
million for assets associated with the landfill in the Rocky
Mountain division, trucking equipment in the Southern division and
property classified as held-for-sale in the Rocky Mountain
division.
[G]
Primarily includes the aforementioned
adjustments. Additionally, our effective tax rate for the three
months ended March 31, 2020 was zero percent and was applied to the
special items accordingly.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210510005798/en/
Nuverra Environmental Solutions, Inc. Investor Relations
602-903-7802 ir@nuverra.com
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