8-K
Koil Energy Solutions, Inc. (KLNG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) ofthe
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
April15, 2025
KOIL
ENERGY SOLUTIONS, INC.
(Exact name of registrant as specified in itscharter)
| Nevada | 000-30351 | 75-2263732 |
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| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission File Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
1310Rankin Road, Houston, TX 77073
(Address of principal executive offices) (Zip Code)
(281) 517-5000
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. |
Emerging growth company ☐
| If an emerging growth company, indicate by check mark if the registrant<br>has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant<br>to Section 13(a) of the Exchange Act. ☐ |
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SECTION 2 – FINANCIAL INFORMATION
| ITEM 2.02. | Results of Operations and Financial Condition. |
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On April 15th, 2025, Koil Energy Solutions, Inc. issued a press release announcing its financial results for the year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
| ITEM 9.01. | Financial Statements and Exhibits. |
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(d) Exhibits
| 99.1 | Press Release issued by Koil Energy Solutions, Inc. dated<br> April 15, 2025 |
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL<br>document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: April 15, 2025 | KOIL ENERGY SOLUTIONS, INC. | |
|---|---|---|
| By: | /s/ Erik Wiik | |
| Erik Wiik | ||
| President and Chief Executive Officer | ||
| (Principal Executive Officer) |
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Exhibit 99.1
KOIL Energy Reports Fourth Quarterand Full Year 2024 Results
April 15, 2025
HOUSTON, April 15, 2025 (GLOBE NEWSWIRE) -- Koil Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, released today its fourth quarter and full year 2024 results.
Fourth Quarter 2024 Results
• Revenue of $ 6 million, a 48% increase year over year
• Modified EBITDA of $ 1 million, an increase of $1.6 million year over year
Full Year 2024 Results
• Revenue of $23 million, a 48% increase year over year
• Modified EBITDA of $3.5 million, a net increase of $4.4 million year over year
• Working capital of $5.7 million as of December 31, 2024, including $3.4 million in cash.
Erik Wiik, President and Chief Executive Officer of KOIL Energy, stated, " I am immensely proud of the KOIL Energy team for delivering an exceptional quarter, surpassing the revenue of each of the previous three quarters in 2024.”
"For the full year 2024, we achieved revenue of $23 million, marking a 48% year-over-year increase. Modified EBITDA improved from a loss last year to $3.5 million. My sincere congratulations and gratitude to the men and women of KOIL Energy. This is nothing short of a remarkable turnaround.”
Financial Highlights:
Q4 revenue of $6 million and EBITDA of $1 million, resulting in a 16% margin. This is a 48% increase in revenue and $1.6 million higher Modified EBITDA compared to the previous year.
Gross margin at 40%, consistent with the previous two quarters. SG&A increased slightly to $1.7 million in the quarter, reflecting increased staffing.
Net income at $537,000, marking a substantial improvement from the net loss of $890,000 recorded in Q4 of 2023. This positive shift in earnings was primarily driven by increased gross profit from fixed-price project activity.
Full year 2024 revenue of $23 million, marking a 48% year-over-year increase driven by a doubling of fixed-price projects.
The gross margin for the full year was 38%, up from 32% in 2023. SG&A expenses were $6.2 million, compared to $6.5 million the previous year. Increasing revenue and reducing costs resulted in a net income of $2.6 million, a substantial improvement from the net loss of $1.6 million in 2023.
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Modified EBITDA improved from a loss in 2023 to $3.5 million in 2024.
This turnaround in earnings led to an improvement in diluted earnings per share, rising to $0.21 compared to a loss of $0.13 per share the previous year.
Working capital at $5.7 million as of December 31, 2024, including $3.4 million in cash. This compares favorably to $2.6 million in working capital as of December 31, 2023, which included $2 million in cash.
Key accomplishments in 2024:
| · | Won a significant contract to deliver subsea distribution equipment |
|---|---|
| · | Awarded a significant contract for advanced maintenance services |
| · | Won a significant order to provide Bend Stiffener Latchers (BSL®) |
| · | Awarded a major scope of work for a subsea safety control system. |
“While we celebrate the results from 2024, we are very excited for our future. In 2025, our team will remain focused on growing the company and delivering on our growth strategy.”
KOIL Energy is one year into an ambitious three-year strategy focused on achieving continued profitable revenue growth. You can view a copy of our growth roadmap in the investor presentation on our webpage. The growth strategy continues to push KOIL Energy’s business performance domestically. International activities have progressed well ahead of the original growth plan. To strengthen our presence in South America, KOIL Energy has expanded into Brazil with a new manufacturing and service support facility in Macaé. KOIL Energy has also established a strategic alliance with SubseaDesign AS, a Norway-based company, to accelerate advancements in subsea technology.
We offer mission-critical deepwater solutions with high barriers to market entry. Management believes that KOIL Energy is positioned to achieve growth and currently without long-term debt.
KOIL Energy will host an investor conference call to review its fourth quarter and full year 2024 results on Tuesday, April 15, 2025, at 10:00 am Eastern Time. Interested parties may listen to the call through a webcast link or using the dial in numbers. (See below details.)
PARTICIPANTWEBCAST LINK:
https://edge.media-server.com/mmc/p/xwpbub4g
PARTICIPANTDIALS:
PARTICIPANTDIAL IN (TOLL FREE): 1-833-630-1956
PARTICIPANTINTERNATIONAL DIAL IN: 1-412-317-1837
The earnings release and a replay of the conference call will also be available on the Company's website, www.koilenergy.com, under the "Investors" section.
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About KOIL (www.koilenergy.com)
KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, KOIL Energy's experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.
Forward-Looking Statements
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
Investor Relations:
ir@koilenergy.com
281-862-2201
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KOIL ENERGY SOLUTIONS, INC.
SUMMARY FINANCIAL DATA
(UNAUDITED)
Comparative Condensed Consolidated Income Statement
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands, except per share amounts) | ||||||||||||
| Revenues | $ | 5,941 | $ | 4,004 | $ | 22,734 | $ | 15,343 | ||||
| Cost of sales | 3,536 | 3,319 | 13,985 | 10,493 | ||||||||
| Selling, general and administrative | 1,876 | 1,571 | 6,192 | 6,460 | ||||||||
| Operating income (loss) | 529 | (886 | ) | 2,557 | (1,610 | ) | ||||||
| Total other (income) expense | (17 | ) | (3 | ) | (79 | ) | (61 | ) | ||||
| Loss before income tax expense | 546 | (883 | ) | 2,636 | (1,549 | ) | ||||||
| Income tax expense (benefit) | 9 | (2 | ) | 16 | 5 | |||||||
| Net income (loss) | $ | 537 | $ | (881 | ) | $ | 2,620 | $ | (1,554 | ) | ||
| Net income (loss) per share, diluted | $ | 0.04 | $ | (0.07 | ) | $ | 0.21 | $ | (0.13 | ) | ||
| Weighted-average shares outstanding, diluted | 12,344 | 11,888 | 12,344 | 11,888 |
Comparative Condensed Consolidated Balance Sheets
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| (In thousands) | ||||
| Assets: | ||||
| Cash | $ | 3,422 | $ | 2,030 |
| Other current assets | 6,784 | 5,819 | ||
| PP&E, net | 2,791 | 2,968 | ||
| Other non-current assets | 5,743 | 6,245 | ||
| Total assets | $ | 18,740 | $ | 17,062 |
| Liabilities: | ||||
| Current liabilities | $ | 4,524 | $ | 5,284 |
| Other long-term liabilities | 5,612 | 6,160 | ||
| Total liabilities | 10,136 | 11,444 | ||
| Stockholders' equity | 8,604 | 5,618 | ||
| Total liabilities and stockholders' equity | $ | 18,740 | $ | 17,062 |
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KOIL ENERGY SOLUTIONS, INC.
SUMMARY FINANCIAL DATA, CONTINUED
(UNAUDITED)
Modified EBITDA
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands) | ||||||||||||
| Net Income (loss) | $ | 537 | $ | (881 | ) | $ | 2,620 | $ | (1,554 | ) | ||
| (Deduct): Interest (income) expense, net | (17 | ) | (4 | ) | (47 | ) | (7 | ) | ||||
| (Deduct) Add: Income tax expense (benefit) | 9 | (3 | ) | 16 | 5 | |||||||
| Add: Depreciation and amortization | 134 | 144 | 571 | 605 | ||||||||
| Add: Share-based compensation | 300 | 15 | 376 | 64 | ||||||||
| Add: Relocation costs | – | – | – | 9 | ||||||||
| Deduct: Gain on sale of asset | (2 | ) | (2 | ) | 1 | (4 | ) | |||||
| Modified EBITDA | $ | 961 | $ | (731 | ) | $ | 3,537 | $ | (882 | ) |
Cash Flow Data
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands) | ||||||||||||
| Cash provided by (used in): | ||||||||||||
| Operating activities | $ | 553 | $ | 936 | $ | 1,726 | $ | 203 | ||||
| Investing activities | (246 | ) | 2 | (373 | ) | (226 | ) | |||||
| Financing activities | (7 | ) | (40 | ) | 39 | (300 | ) | |||||
| Change in cash | $ | 300 | $ | 898 | $ | 1,392 | $ | (323 | ) |
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