8-K
MAMMOTH ENERGY SERVICES, INC. (TUSK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
| PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
Date of Report (Date of earliest event reported): March 4, 2022
Mammoth Energy Services, Inc.
(Exact name of registrant as specified in its charter)
001-37917
(Commission File No.)
| Delaware | 32-0498321 | |||
|---|---|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
| 14201 Caliber Drive, | Suite 300 | |||
| Oklahoma City, | Oklahoma | (405) | 608-6007 | 73134 |
| (Address of principal executive offices) | (Registrant’s telephone number, including area code) | (Zip 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)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Securities registered pursuant to Section 12(b) of The Act: | ||
|---|---|---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock | TUSK | The Nasdaq Stock Market LLC |
| NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(s) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On March 4, 2022, Mammoth Energy Services, Inc. (the “Company”) issued a press release announcing its financial and operational results for the fourth quarter and full year ended December 31, 2021. A copy of that press release is furnished as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.
Item 7.01 Regulation FD Disclosure
On March 4, 2022, the Company posted an investor presentation to the “investors” section of its website (www.mammothenergy.com), where the Company routinely posts announcements, updates, events, investor information and presentations and recent news releases. Information on the Company's website does not constitute part of this Current Report on Form 8-K.
The information in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press release dated March 4, 2022, entitled “Mammoth Energy Services, Inc. Announces Fourth Quarter and Full Year 2021 Operational and Financial Results.” |
|---|---|
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
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.
| MAMMOTH ENERGY SERVICES, INC. | |||
|---|---|---|---|
| Date: | March 4, 2022 | By: | /s/ Mark Layton |
| Mark Layton | |||
| Chief Financial Officer and Secretary |
Document
Exhibit 99.1
Mammoth Energy Services, Inc. Announces
Fourth Quarter and Full Year 2021 Operational and Financial Results
OKLAHOMA CITY - March 4, 2022 - Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the fourth quarter and full year ended December 31, 2021.
Financial Overview for the Fourth Quarter and Full Year 2021:
Total revenue was $57.2 million for the fourth quarter of 2021, as compared to $85.1 million for the same quarter of 2020 and $57.5 million for the third quarter of 2021. Total revenue was $229.0 million for the year ended December 31, 2021 as compared to $313.1 million for the year ended December 31, 2020.
Net loss for the fourth quarter of 2021 was $13.3 million, or a $0.28 loss per share, as compared to $11.9 million, or a $0.26 loss per share, for the same quarter of 2020, and $40.9 million, or a $0.88 loss per share, for the third quarter of 2021. Net loss for the year ended December 31, 2021 was $101.4 million, or $2.18 per fully diluted share, as compared to net loss of $107.6 million, or $2.36 per fully diluted share for the year ended December 31, 2020.
Adjusted EBITDA (as defined and reconciled below) increased to $17.2 million for the fourth quarter of 2021, as compared to $7.5 million for the same quarter of 2020 and ($29.7) million for the third quarter of 2021. Adjusted EBITDA was ($11.6) million for the year ended December 31, 2021, as compared to $50.0 million for the year ended December 31, 2020. During the third quarter of 2021, Mammoth recognized expense of $32.6 million related to its settlement with Gulfport Energy Corporation. Excluding this non-recurring expense, adjusted EBITDA was $2.9 million for the third quarter of 2021 and $21.0 million for the full year 2021.
Arty Straehla, Chief Executive Officer of Mammoth commented, “We ended the year sustaining sequential quarterly momentum on top line revenues and reducing net loss. I’m proud of the progress our team is making to further enhance our efficient fixed cost model. We have implemented a cost management structure and methodical operational processes that we believe will enable significant top line growth without meaningfully changing our SG&A structure.
“As we enter 2022, we see improved macro-economic trends that we believe will drive increased demand for our two largest business segments, well completion services and infrastructure services,” added Straehla. “In addition, we continue to vigorously pursue numerous avenues to collect our receivable from PREPA for work performed by our subsidiary Cobra Acquisitions LLC in Puerto Rico. We believe that published documentation to date continues to show that our team performed a difficult job in a difficult environment to save lives and aid the people of Puerto Rico in their time of need.”
Infrastructure Services
Mammoth’s infrastructure services division contributed revenue of $19.7 million, or approximately 34% of Mammoth’s total revenue, for the fourth quarter of 2021, as compared to $56.6 million for the same quarter of 2020 and $25.1 million for the third quarter of 2021. The decrease in revenue compared to the same quarter of 2020 is primarily due to a decline in storm activity, resulting in lower storm restoration revenue.
The infrastructure segment contributed revenues of $93.4 million for the year ended December 31, 2021, down from $157.8 million for the year ended December 31, 2020. The decrease in revenue is primarily due to a decline in storm activity, resulting in lower storm restoration revenue, as well as management and crew turnover.
Well Completion Services
Mammoth’s well completion services division contributed revenue (inclusive of inter-segment revenue) of $21.3 million on 891 stages for the fourth quarter of 2021, as compared to $12.7 million on 291 stages for the same quarter of 2020 and $22.7 million on 688 stages for the third quarter of 2021. On average, 1.6 of the Company’s fleets were active for the fourth quarter of 2021, compared to an average utilization of 0.6 fleets during the same quarter of 2020 and 1.2 fleets during the third quarter of 2021.
The well completion division contributed revenues (inclusive of inter-segment revenues) of $84.3 million on 2,544 stages for the year ended December 31, 2021, down from $88.3 million on 2,880 stages for the year ended December 31, 2020. On average, 1.1 of the Company’s fleets were active for the year ended December 31, 2021 compared to 1.5 fleets for the year ended December 31, 2020.
Natural Sand Proppant Services
Mammoth’s natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $10.8 million for the fourth quarter of 2021, as compared to $11.8 million for the same quarter of 2020 and $8.4 million for the third quarter of 2021. In the fourth quarter of 2021, the Company sold approximately 270,000 tons of sand at an average sales price of $17.84 per ton, as compared to sales of approximately 100,000 tons of sand at an average sales price of $15.59 per ton during the same quarter of 2020. In the third quarter of 2021, sales were approximately 315,000 tons of sand at an average price of $16.58 per ton.
The natural sand proppant division contributed revenues (inclusive of inter-segment revenues) of $34.9 million for the year ended December 31, 2021, as compared to $34.4 million for the year ended December 31, 2020. The Company sold 1.0 million tons of sand during the year ended December 31, 2021, an increase from 0.5 million tons of sand during the year ended December 31, 2020. The Company’s average sales price for the sand sold during the year ended December 31, 2021 was $16.76 per ton, an increase from $14.58 per ton average sales price during the year ended December 31, 2020.
Drilling Services
Mammoth’s drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.0 million for the fourth quarter of 2021, as compared to $0.6 million for the same quarter of 2020 and $1.2 million for the third quarter of 2021. The drilling services division contributed revenues of $4.3 million for the year ended December 31, 2021, as compared to $7.8 million for the year ended December 31, 2020.
The Company temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.
Other Services
Mammoth’s other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full-service transportation, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $4.9 million for the fourth quarter of 2021, as compared to $4.0 million for the same quarter of 2020 and $4.6 million for the third quarter of 2021. The Company’s other services contributed revenues of $18.5 million for the year ended December 31, 2021, as compared to $28.8 million for the year ended December 31, 2020.
As a result of market conditions, the Company temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019, its coil tubing and full-service transportation operations beginning in July 2020 and its crude oil hauling operations beginning in July 2021.
Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”) expenses were $3.5 million for the fourth quarter of 2021, as compared to $30.5 million for the same quarter of 2020 and $41.9 million for the third quarter of 2021.
Following is a breakout of SG&A expense (in thousands):
| Three Months Ended | Twelve Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||
| Cash expenses: | ||||||||||
| Compensation and benefits | $ | 3,685 | $ | 3,738 | $ | 3,353 | $ | 15,064 | $ | 14,876 |
| Professional services(a) | (2,383) | 4,570 | 4,571 | 11,400 | 19,905 | |||||
| Other(b) | 1,994 | 2,256 | 2,252 | 9,052 | 8,828 | |||||
| Total cash SG&A expense | 3,296 | 10,564 | 10,176 | 35,516 | 43,609 | |||||
| Non-cash expenses: | ||||||||||
| Bad debt provision(c) | 12 | 19,652 | 31,449 | 41,662 | 21,958 | |||||
| Stock based compensation | 241 | 292 | 241 | 1,068 | 1,618 | |||||
| Total non-cash SG&A expense | 253 | 19,944 | 31,690 | 42,730 | 23,576 | |||||
| Total SG&A expense | $ | 3,549 | $ | 30,508 | $ | 41,866 | $ | 78,246 | $ | 67,185 |
a. Certain legal expenses incurred during 2021 were reclassified to Other, net during the fourth quarter of 2021.
b. Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.
c. The bad debt provision for the years ended December 31, 2021 and 2020 includes $41.2 million and $19.4 million, respectively, related to the Stingray Pressure Pumping and Muskie contracts with Gulfport.
SG&A expenses, as a percentage of total revenue, were 6% for the fourth quarter of 2021, as compared to 36% for the same quarter of 2020 and 73% for the third quarter of 2021. SG&A expenses, as a percentage of total revenue, were 34% for the year ended December 31, 2021, as compared to 21% for the year ended December 31, 2020.
Liquidity
As of December 31, 2021, Mammoth had cash on hand of $9.9 million, outstanding borrowings under its revolving credit facility of $83.4 million and $16.5 million of available borrowing capacity under its revolving credit facility, after giving effect to $9.0 million of outstanding letters of credit and the requirement to maintain a $10 million reserve out of the available borrowing capacity. As of December 31, 2021, Mammoth had total liquidity of $26.4 million.
On February 28, 2022, Mammoth amended its revolving credit facility to, among other things, amend certain financial covenants, provide for a conditional increase of the applicable interest margin, permit certain sale-leaseback transactions, provide for a reduction in the maximum revolving advance amount in an amount equal to 50% of the PREPA claims proceeds, subject to a floor equal to the sum of eligible billed and unbilled accounts receivables, and classify the payments pursuant to its previously disclosed settlement agreement with MasTec Renewables Puerto Rico, LLC as restricted payments, requiring $20.0 million of availability both before and after making such payments. The amendment also permanently waived compliance by us and our subsidiaries with the leverage ratio and fixed charge coverage ratio covenants in our revolving credit facility for the fiscal quarters ended September 30, 2021 and December 31, 2021, respectively, ending the prior limited covenant waiver period.
As of March 2, 2022, Mammoth had cash on hand of $7.2 million and outstanding borrowings under its revolving credit facility of $83.7 million. As of March 2, 2022, the Company had $10.6 million of available borrowing capacity under its revolving credit facility, after giving effect to $8.5 million of outstanding letters of credit and the requirement to maintain a $7.5 million reserve out of the available borrowing capacity.
Capital Expenditures
The following table summarizes Mammoth’s capital expenditures by operating division for the periods indicated (in thousands):
| Three Months Ended | Twelve Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||
| Infrastructure services(a) | $ | 153 | $ | 37 | $ | 181 | $ | 627 | $ | 258 |
| Well completion services(b) | 1,135 | 606 | 2,392 | 4,327 | 4,358 | |||||
| Natural sand proppant services(c) | 55 | 4 | 16 | 484 | 1,073 | |||||
| Drilling services(d) | 1 | 234 | 4 | 44 | 432 | |||||
| Other(e) | 25 | 7 | 172 | 361 | 716 | |||||
| Total capital expenditures | $ | 1,369 | $ | 888 | $ | 2,765 | $ | 5,843 | $ | 6,837 |
a. Capital expenditures primarily for truck, tooling and equipment purchases for the periods presented.
b. Capital expenditures primarily for upgrades to our pressure pumping fleet and water transfer equipment for the periods presented.
c. Capital expenditures primarily for maintenance for the periods presented.
d. Capital expenditures primarily for directional drilling equipment for the periods presented.
e. Capital expenditures primarily for equipment for the Company’s rental businesses for the periods presented.
Conference Call Information
Mammoth will host a conference call on Friday, March 4, 2022 at 8:00 a.m. Central time (9:00 a.m. Eastern time) to discuss its fourth quarter and full year 2021 financial and operational results. The telephone number to access the conference call is 216-562-0385. The conference call will also be webcast live on https://ir.mammothenergy.com/events-presentations.
About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth’s suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company’s business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements
are based on management’s current expectations and beliefs, forecasts for the Company’s existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company’s forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company’s acquisitions and contracts, many of which are beyond the Company’s control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the impact of the current Russian/Ukrainian military conflict on the global energy and capital markets and global stability; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company’s subsidiary Cobra Acquisitions LLC ("Cobra") by the Puerto Rico Electric Power Authority ("PREPA"); the failure to receive or delays in receiving governmental authorizations, approvals and/or payments, including payments with respect to the PREPA account receivable for prior services to PREPA performed by Cobra; the Company’s inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions; whether a federal infrastructure bill is implemented and the terms thereof; the loss of or interruption in operations of one or more of Mammoth’s significant suppliers or customers; the loss of management and/or crews; the outcome or settlement of our litigation matters, including the adverse impact of the recent settlements with Gulfport Energy Corporation and MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; Mammoth’s ability to continue to comply with, or if applicable, obtain a waiver of forecasted or actual noncompliance with certain financial covenants and comply with other terms and conditions under our recently amended revolving credit facility; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.
Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
| ASSETS | December 31, | December 31, | ||
|---|---|---|---|---|
| 2021 | 2020 | |||
| CURRENT ASSETS | (in thousands) | |||
| Cash and cash equivalents | $ | 9,899 | $ | 14,822 |
| Short-term investment | 1,762 | 1,750 | ||
| Accounts receivable, net | 407,550 | 393,112 | ||
| Receivables from related parties, net | 88 | 28,461 | ||
| Inventories | 8,366 | 12,020 | ||
| Prepaid expenses | 12,381 | 13,825 | ||
| Other current assets | 737 | 758 | ||
| Total current assets | 440,783 | 464,748 | ||
| Property, plant and equipment, net | 176,586 | 251,262 | ||
| Sand reserves | 64,641 | 65,876 | ||
| Operating lease right-of-use assets | 12,168 | 20,179 | ||
| Intangible assets, net | 2,561 | 4,774 | ||
| Goodwill | 11,717 | 12,608 | ||
| Deferred income tax asset | 8,094 | — | ||
| Other non-current assets | 4,342 | 5,115 | ||
| Total assets | $ | 720,892 | $ | 824,562 |
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable | $ | 37,560 | $ | 40,319 |
| Accrued expenses and other current liabilities | 62,516 | 44,408 | ||
| Current operating lease liability | 5,942 | 8,618 | ||
| Current portion of long-term debt | 1,468 | 1,165 | ||
| Income taxes payable | 42,748 | 34,088 | ||
| Total current liabilities | 150,234 | 128,598 | ||
| Long-term debt, net of current portion | 85,240 | 81,338 | ||
| Deferred income tax liabilities | 865 | 24,741 | ||
| Long-term operating lease liability | 5,918 | 11,377 | ||
| Asset retirement obligation | 3,720 | 4,746 | ||
| Other liabilities | 11,693 | 10,435 | ||
| Total liabilities | 257,670 | 261,235 | ||
| COMMITMENTS AND CONTINGENCIES | ||||
| EQUITY | ||||
| Equity: | ||||
| Common stock, $0.01 par value, 200,000,000 shares authorized, 46,684,065 and 45,769,283 issued and outstanding at December 31, 2021 and December 31, 2020 | 467 | 458 | ||
| Additional paid in capital | 538,221 | 537,039 | ||
| Retained earnings | (72,535) | 28,895 | ||
| Accumulated other comprehensive loss | (2,931) | (3,065) | ||
| Total equity | 463,222 | 563,327 | ||
| Total liabilities and equity | $ | 720,892 | $ | 824,562 |
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
| Three Months Ended | Twelve Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||
| (in thousands, except per share amounts) | ||||||||||
| REVENUE | ||||||||||
| Services revenue | $ | 46,262 | $ | 65,079 | $ | 52,417 | $ | 182,236 | $ | 234,081 |
| Services revenue - related parties | 104 | 7,862 | 601 | 15,782 | 43,091 | |||||
| Product revenue | 10,867 | 10,234 | 4,467 | 28,799 | 28,404 | |||||
| Product revenue - related parties | — | 1,875 | — | 2,145 | 7,500 | |||||
| Total revenue | 57,233 | 85,050 | 57,485 | 228,962 | 313,076 | |||||
| COST AND EXPENSES | ||||||||||
| Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $15,953, $19,780, $35,857, $69,401 and $85,481, respectively, for the three months ended December 31, 2021, December 31, 2020 and September 30, 2021 and years ended December 31, 2021 and 2020) | 41,572 | 51,260 | 43,538 | 170,275 | 205,657 | |||||
| Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $0, $0, $0, $0 and $0, respectively, for the three months ended December 31, 2021, December 31, 2020 and September 30, 2021 and years ended December 31, 2021 and 2020) | 134 | 90 | 181 | 531 | 418 | |||||
| Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $1,943, $2,387, $4,667, $8,993 and $9,758, respectively, for the three months ended December 31, 2021, December 31, 2020 and September 30, 2021 and years ended December 31, 2021 and 2020) | 4,581 | 4,083 | 9,865 | 27,520 | 25,946 | |||||
| Selling, general and administrative | 3,549 | 30,364 | 41,866 | 77,861 | 66,427 | |||||
| Selling, general and administrative - related parties | — | 144 | — | 385 | 758 | |||||
| Depreciation, depletion, amortization and accretion | 17,916 | 22,187 | 19,148 | 78,475 | 95,317 | |||||
| Impairment of goodwill | 891 | — | — | 891 | 54,973 | |||||
| Impairment of other long-lived assets | 665 | — | 547 | 1,212 | 12,897 | |||||
| Total cost and expenses | 69,308 | 108,128 | 115,145 | 357,150 | 462,393 | |||||
| Operating loss | (12,075) | (23,078) | (57,660) | (128,188) | (149,317) | |||||
| OTHER INCOME (EXPENSE) | ||||||||||
| Interest expense, net | (2,528) | (1,191) | (1,484) | (6,406) | (5,397) | |||||
| Other income, net | 4,813 | 9,559 | 11,056 | 10,816 | 33,048 | |||||
| Other (expense) income, net - related parties | — | (341) | — | (515) | 1,890 | |||||
| Total other income | 2,285 | 8,027 | 9,572 | 3,895 | 29,541 | |||||
| Loss before income taxes | (9,790) | (15,051) | (48,088) | (124,293) | (119,776) | |||||
| Provision (benefit) for income taxes | 3,507 | (3,190) | (7,187) | (22,863) | (12,169) | |||||
| Net loss | $ | (13,297) | $ | (11,861) | $ | (40,901) | $ | (101,430) | $ | (107,607) |
| OTHER COMPREHENSIVE LOSS | ||||||||||
| Foreign currency translation adjustment, net of tax of $0, ($170), ($69), ($36) and ($54), respectively, for the three months ended December 31, 2021, December 31, 2020 and September 30, 2021 and years ended December 31, 2021 and 2020) | 16 | 663 | (289) | 134 | 241 | |||||
| Comprehensive loss | $ | (13,281) | $ | (11,198) | $ | (41,190) | $ | (101,296) | $ | (107,366) |
| Net loss per share (basic) | $ | (0.28) | $ | (0.26) | $ | (0.88) | $ | (2.18) | $ | (2.36) |
| Net loss per share (diluted) | $ | (0.28) | $ | (0.26) | $ | (0.88) | $ | (2.18) | $ | (2.36) |
| Weighted average number of shares outstanding (basic) | 46,683 | 45,769 | 46,683 | 46,428 | 45,644 | |||||
| Weighted average number of shares outstanding (diluted) | 46,683 | 45,769 | 46,683 | 46,428 | 45,644 |
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Twelve Months Ended | ||||
|---|---|---|---|---|
| December 31, | ||||
| 2021 | 2020 | |||
| (in thousands) | ||||
| Cash flows from operating activities: | ||||
| Net loss | $ | (101,430) | $ | (107,607) |
| Adjustments to reconcile net loss to cash (used in) provided by operating activities: | ||||
| Stock based compensation | 1,191 | 1,952 | ||
| Depreciation, depletion, accretion and amortization | 78,475 | 95,317 | ||
| Amortization of coil tubing strings | — | 359 | ||
| Amortization of debt origination costs | 665 | 831 | ||
| Bad debt expense | 41,662 | 21,958 | ||
| Gain on disposal of property and equipment | (5,435) | (1,379) | ||
| Impairment of goodwill | 891 | 54,973 | ||
| Impairment of other long-lived assets | 1,212 | 12,897 | ||
| Deferred income taxes | (32,005) | (12,186) | ||
| Other | 280 | (143) | ||
| Changes in assets and liabilities: | ||||
| Accounts receivable, net | (55,898) | (32,621) | ||
| Receivables from related parties | 28,373 | (40,333) | ||
| Inventories | 3,654 | 5,103 | ||
| Prepaid expenses and other assets | 1,444 | 1,996 | ||
| Accounts payable | (2,981) | 2,526 | ||
| Payables to related parties | (1) | (522) | ||
| Accrued expenses and other liabilities | 12,380 | 3,198 | ||
| Income taxes payable | 8,658 | 648 | ||
| Net cash (used in) provided by operating activities | (18,865) | 6,967 | ||
| Cash flows from investing activities: | ||||
| Purchases of property and equipment | (5,843) | (6,761) | ||
| Purchases of property and equipment from related parties | — | (76) | ||
| Contributions to equity investee | — | (490) | ||
| Proceeds from disposal of property and equipment | 11,350 | 6,782 | ||
| Purchase of short-term investment | — | (1,750) | ||
| Net cash provided by (used in) investing activities | 5,507 | (2,295) | ||
| Cash flows from financing activities: | ||||
| Borrowings on long-term debt | 73,100 | 35,351 | ||
| Repayments of long-term debt | (68,911) | (32,800) | ||
| Proceeds from sale-leaseback transaction | 9,473 | 5,000 | ||
| Payments on sale-leaseback transaction | (2,951) | (268) | ||
| Principal payments on financing leases and equipment financing notes | (2,283) | (1,966) | ||
| Debt issuance costs | — | (1,051) | ||
| Net cash provided by financing activities | 8,428 | 4,266 | ||
| Effect of foreign exchange rate on cash | 7 | 12 | ||
| Net change in cash and cash equivalents | (4,923) | 8,950 | ||
| Cash and cash equivalents at beginning of period | 14,822 | 5,872 | ||
| Cash and cash equivalents at end of period | $ | 9,899 | $ | 14,822 |
| Supplemental disclosure of cash flow information: | ||||
| Cash paid for interest | $ | 4,827 | $ | 4,729 |
| Cash paid for income taxes, net of refunds received | $ | 829 | $ | (617) |
| Supplemental disclosure of non-cash transactions: | ||||
| Purchases of property and equipment included in accounts payable | $ | 1,535 | $ | 1,312 |
| Right-of-use assets obtained for financing lease liabilities | $ | 1,750 | $ | 2,431 |
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
| Three months ended December 31, 2021 | Infrastructure | Well Completion | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue from external customers | $ | 19,714 | $ | 21,251 | $ | 10,849 | $ | 963 | $ | 4,456 | $ | — | $ | 57,233 | ||||||||||||||||
| Intersegment revenues | — | 25 | — | 69 | 414 | (508) | — | |||||||||||||||||||||||
| Total revenue | 19,714 | 21,276 | 10,849 | 1,032 | 4,870 | (508) | 57,233 | |||||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 20,096 | 16,443 | 4,601 | 1,363 | 3,784 | — | 46,287 | |||||||||||||||||||||||
| Intersegment cost of revenues | 31 | 321 | — | — | 156 | (508) | — | |||||||||||||||||||||||
| Total cost of revenue | 20,127 | 16,764 | 4,601 | 1,363 | 3,940 | (508) | 46,287 | |||||||||||||||||||||||
| Selling, general and administrative | (1,017) | 2,164 | 1,243 | 309 | 850 | — | 3,549 | |||||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 4,380 | 6,709 | 1,946 | 1,812 | 3,069 | — | 17,916 | |||||||||||||||||||||||
| Impairment of goodwill | 891 | — | — | — | — | — | 891 | |||||||||||||||||||||||
| Impairment of other long-lived assets | 665 | — | — | — | — | — | 665 | |||||||||||||||||||||||
| Operating (loss) income | (5,332) | (4,361) | 3,059 | (2,452) | (2,989) | — | (12,075) | |||||||||||||||||||||||
| Interest expense, net | 1,613 | 419 | 183 | 116 | 197 | — | 2,528 | |||||||||||||||||||||||
| Other (income) expense, net | (4,131) | (121) | 18 | 23 | (602) | — | (4,813) | |||||||||||||||||||||||
| (Loss) income before income taxes | $ | (2,814) | $ | (4,659) | $ | 2,858 | $ | (2,591) | $ | (2,584) | $ | — | $ | (9,790) | Three months ended December 31, 2020 | Infrastructure | Well Completion | Sand | Drilling | All Other | Eliminations | Total | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||
| Revenue from external customers | $ | 56,636 | $ | 12,653 | $ | 11,843 | $ | 580 | $ | 3,338 | $ | — | $ | 85,050 | ||||||||||||||||
| Intersegment revenues | — | 44 | — | 23 | 670 | (737) | — | |||||||||||||||||||||||
| Total revenue | 56,636 | 12,697 | 11,843 | 603 | 4,008 | (737) | 85,050 | |||||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 41,895 | 5,194 | 4,110 | 1,165 | 3,069 | — | 55,433 | |||||||||||||||||||||||
| Intersegment cost of revenues | 127 | 426 | — | — | 184 | (737) | — | |||||||||||||||||||||||
| Total cost of revenue | 42,022 | 5,620 | 4,110 | 1,165 | 3,253 | (737) | 55,433 | |||||||||||||||||||||||
| Selling, general and administrative | 7,323 | 17,692 | 4,070 | 373 | 1,050 | — | 30,508 | |||||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 6,957 | 7,066 | 2,390 | 2,224 | 3,550 | — | 22,187 | |||||||||||||||||||||||
| Operating income (loss) | 334 | (17,681) | 1,273 | (3,159) | (3,845) | — | (23,078) | |||||||||||||||||||||||
| Interest expense, net | 691 | 273 | 95 | 5 | 127 | — | 1,191 | |||||||||||||||||||||||
| Other (income) expense, net | (8,355) | 170 | 86 | 23 | (1,142) | — | (9,218) | |||||||||||||||||||||||
| Income (loss) before income taxes | $ | 7,998 | $ | (18,124) | $ | 1,092 | $ | (3,187) | $ | (2,830) | $ | — | $ | (15,051) | Three months ended September 30, 2021 | Infrastructure | Well Completion | Sand | Drilling | All Other | Eliminations | Total | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||
| Revenue from external customers | $ | 25,070 | $ | 22,702 | $ | 4,439 | $ | 1,184 | $ | 4,090 | $ | — | $ | 57,485 | ||||||||||||||||
| Intersegment revenues | — | 30 | 3,980 | 23 | 482 | (4,515) | — | |||||||||||||||||||||||
| Total revenue | 25,070 | 22,732 | 8,419 | 1,207 | 4,572 | (4,515) | 57,485 | |||||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 21,844 | 18,125 | 9,368 | 1,566 | 3,614 | — | 54,517 | |||||||||||||||||||||||
| Intersegment cost of revenues | 54 | 3,204 | — | — | 324 | (4,515) | (933) | |||||||||||||||||||||||
| Total cost of revenue | 21,898 | 21,329 | 9,368 | 1,566 | 3,938 | (4,515) | 53,584 | |||||||||||||||||||||||
| Selling, general and administrative | 4,979 | 34,606 | 1,068 | 288 | 925 | — | 41,866 | |||||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 4,933 | 6,538 | 2,533 | 1,942 | 3,202 | — | 19,148 | |||||||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 547 | — | 547 | |||||||||||||||||||||||
| Operating loss | (6,740) | (39,741) | (4,550) | (2,589) | (4,040) | — | (57,660) | |||||||||||||||||||||||
| Interest expense, net | 979 | 215 | 107 | 56 | 127 | — | 1,484 | |||||||||||||||||||||||
| Other (income) expense, net | (9,256) | 755 | (46) | (66) | (2,443) | — | (11,056) | |||||||||||||||||||||||
| Income (loss) before income taxes | $ | 1,537 | $ | (40,711) | $ | (4,611) | $ | (2,579) | $ | (1,724) | $ | — | $ | (48,088) |
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
| Year ended December 31, 2021 | Infrastructure | Well Completion | Sand | Drilling | All Other | Eliminations | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue from external customers | $ | 93,403 | $ | 84,190 | $ | 30,880 | $ | 4,197 | $ | 16,292 | $ | — | $ | 228,962 |
| Intersegment revenues | — | 144 | 3,980 | 124 | 2,218 | (6,466) | — | |||||||
| Total revenue | 93,403 | 84,334 | 34,860 | 4,321 | 18,510 | (6,466) | 228,962 | |||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 90,363 | 58,782 | 27,232 | 6,102 | 15,847 | — | 198,326 | |||||||
| Intersegment cost of revenues | 196 | 5,770 | — | — | 500 | (6,466) | — | |||||||
| Total cost of revenue | 90,559 | 64,552 | 27,232 | 6,102 | 16,347 | (6,466) | 198,326 | |||||||
| Selling, general and administrative | 18,267 | 49,275 | 5,351 | 1,414 | 3,939 | — | 78,246 | |||||||
| Depreciation, depletion, amortization and accretion | 21,880 | 26,377 | 9,005 | 7,996 | 13,217 | — | 78,475 | |||||||
| Impairment of goodwill | 891 | — | — | — | — | — | 891 | |||||||
| Impairment of other long-lived assets | 665 | — | — | — | 547 | — | 1,212 | |||||||
| Operating loss | (38,859) | (55,870) | (6,728) | (11,191) | (15,540) | — | (128,188) | |||||||
| Interest expense, net | 3,925 | 1,107 | 474 | 293 | 607 | — | 6,406 | |||||||
| Other (income) expense, net | (6,785) | 1,073 | (874) | (177) | (3,538) | — | (10,301) | |||||||
| Loss before income taxes | $ | (35,999) | $ | (58,050) | $ | (6,328) | $ | (11,307) | $ | (12,609) | $ | — | $ | (124,293) |
| Year ended December 31, 2020 | Infrastructure | Well Completion | Sand | Drilling | All Other | Eliminations | Total | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue from external customers | $ | 157,751 | $ | 87,201 | $ | 34,265 | $ | 7,746 | $ | 26,113 | $ | — | $ | 313,076 |
| Intersegment revenues | — | 1,124 | 95 | 39 | 2,716 | (3,974) | — | |||||||
| Total revenue | 157,751 | 88,325 | 34,360 | 7,785 | 28,829 | (3,974) | 313,076 | |||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 124,232 | 45,647 | 25,955 | 10,757 | 25,430 | — | 232,021 | |||||||
| Intersegment cost of revenues | 323 | 1,836 | — | 152 | 1,663 | (3,974) | — | |||||||
| Total cost of revenue | 124,555 | 47,483 | 25,955 | 10,909 | 27,093 | (3,974) | 232,021 | |||||||
| Selling, general and administrative | 27,261 | 23,039 | 7,807 | 3,149 | 5,930 | — | 67,186 | |||||||
| Depreciation, depletion, amortization and accretion | 29,373 | 30,411 | 9,771 | 10,039 | 15,722 | — | 95,316 | |||||||
| Impairment of goodwill | — | 53,406 | — | — | 1,567 | — | 54,973 | |||||||
| Impairment of other long-lived assets | — | 4,203 | — | 326 | 8,368 | — | 12,897 | |||||||
| Operating loss | (23,438) | (70,217) | (9,173) | (16,638) | (29,851) | — | (149,317) | |||||||
| Interest expense, net | 2,794 | 1,130 | 312 | 454 | 707 | — | 5,397 | |||||||
| Other (income) expense, net | (32,437) | (2,274) | 1,839 | (227) | (1,839) | — | (34,938) | |||||||
| Income (loss) before income taxes | $ | 6,205 | $ | (69,073) | $ | (11,324) | $ | (16,865) | $ | (28,719) | $ | — | $ | (119,776) |
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion expense, impairment of goodwill, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets and interest on trade accounts receivable) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth’s computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.
The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income (loss) on a consolidated basis and for each of the Company’s segments (in thousands):
Consolidated
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||
| Net loss | $ | (13,297) | $ | (11,861) | $ | (40,901) | $ | (101,430) | $ | (107,607) |
| Depreciation, depletion, amortization and accretion expense | 17,916 | 22,187 | 19,148 | 78,475 | 95,317 | |||||
| Impairment of goodwill | 891 | — | — | 891 | 54,973 | |||||
| Impairment of other long-lived assets | 665 | — | 547 | 1,212 | 12,897 | |||||
| Public offering costs | — | — | 13 | 91 | — | |||||
| Stock based compensation | 242 | 354 | 252 | 1,191 | 1,952 | |||||
| Interest expense, net | 2,528 | 1,191 | 1,484 | 6,406 | 5,397 | |||||
| Other (income) expense, net | (4,813) | (9,218) | (11,056) | (10,301) | (34,938) | |||||
| Provision (benefit) for income taxes | 3,507 | (3,190) | (7,187) | (22,863) | (12,169) | |||||
| Interest on trade accounts receivable | 9,571 | 8,077 | 7,963 | 34,709 | 34,130 | |||||
| Adjusted EBITDA | $ | 17,210 | $ | 7,540 | $ | (29,737) | $ | (11,619) | $ | 49,952 |
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Infrastructure Services
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| Reconciliation of Adjusted EBITDA to net (loss) income: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||
| Net (loss) income | $ | (5,992) | $ | 5,950 | $ | (2,410) | $ | (36,711) | $ | (928) |
| Depreciation and amortization expense | 4,380 | 6,957 | 4,933 | 21,880 | 29,373 | |||||
| Impairment of goodwill | 891 | — | — | 891 | — | |||||
| Impairment of other long-lived assets | 665 | — | — | 665 | — | |||||
| Public offering costs | — | — | (7) | 39 | — | |||||
| Stock based compensation | 100 | 156 | 96 | 500 | 580 | |||||
| Interest expense | 1,613 | 691 | 971 | 3,925 | 2,794 | |||||
| Other income, net | (4,131) | (8,355) | (9,256) | (6,785) | (32,437) | |||||
| Provision for income taxes | 3,175 | 2,048 | 3,947 | 712 | 7,133 | |||||
| Interest on trade accounts receivable | 9,571 | 8,418 | 9,290 | 36,551 | 32,214 | |||||
| Adjusted EBITDA | $ | 10,272 | $ | 15,865 | $ | 7,564 | $ | 21,667 | $ | 38,729 |
Well Completion Services
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||
| Net loss | $ | (4,659) | $ | (18,123) | $ | (40,711) | $ | (58,051) | $ | (69,073) |
| Depreciation and amortization expense | 6,709 | 7,066 | 6,538 | 26,377 | 30,411 | |||||
| Impairment of goodwill | — | — | — | — | 53,406 | |||||
| Impairment of other long-lived assets | — | — | — | — | 4,203 | |||||
| Public offering costs | — | — | 19 | 31 | — | |||||
| Stock based compensation | 80 | 70 | 95 | 333 | 527 | |||||
| Interest expense | 419 | 273 | 215 | 1,107 | 1,130 | |||||
| Other (income) expense, net | (121) | 170 | 755 | 1,073 | (2,274) | |||||
| Interest on trade accounts receivable | — | (318) | (1,327) | (1,841) | 1,888 | |||||
| Adjusted EBITDA | $ | 2,428 | $ | (10,862) | $ | (34,416) | $ | (30,971) | $ | 20,218 |
Natural Sand Proppant Services
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| Reconciliation of Adjusted EBITDA to net income (loss): | 2021 | 2020 | 2021 | 2021 | 2020 | |||||
| Net income (loss) | $ | 2,858 | $ | 1,092 | $ | (4,611) | $ | (6,328) | $ | (11,324) |
| Depreciation, depletion, amortization and accretion expense | 1,946 | 2,390 | 2,533 | 9,005 | 9,771 | |||||
| Public offering costs | — | — | — | 12 | — | |||||
| Stock based compensation | 39 | 70 | 32 | 202 | 425 | |||||
| Interest expense | 183 | 95 | 107 | 474 | 312 | |||||
| Other expense (income), net | 18 | 86 | (46) | (874) | 1,839 | |||||
| Interest on trade accounts receivable | — | (23) | — | (1) | 3 | |||||
| Adjusted EBITDA | $ | 5,044 | $ | 3,710 | $ | (1,985) | $ | 2,490 | $ | 1,026 |
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Drilling Services
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||
| Net loss | $ | (2,590) | $ | (3,187) | $ | (2,579) | $ | (11,307) | $ | (16,865) |
| Depreciation expense | 1,812 | 2,224 | 1,942 | 7,996 | 10,039 | |||||
| Impairment of other long-lived assets | — | — | — | — | 326 | |||||
| Public offering costs | — | — | — | 2 | — | |||||
| Stock based compensation | 5 | 36 | 6 | 76 | 203 | |||||
| Interest expense | 116 | 5 | 56 | 293 | 454 | |||||
| Other expense (income), net | 23 | 23 | (66) | (177) | (227) | |||||
| Adjusted EBITDA | $ | (634) | $ | (899) | $ | (641) | $ | (3,117) | $ | (6,070) |
Other Services(a)
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| Reconciliation of Adjusted EBITDA to net (loss) income: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||
| Net (loss) income | $ | (2,915) | $ | 2,407 | $ | 9,410 | $ | 10,967 | $ | (9,417) |
| Depreciation, amortization and accretion expense | 3,069 | 3,550 | 3,202 | 13,217 | 15,722 | |||||
| Impairment of goodwill | — | — | — | — | 1,567 | |||||
| Impairment of other long-lived assets | — | — | 547 | 547 | 8,368 | |||||
| Public offering costs | — | — | 1 | 7 | — | |||||
| Stock based compensation | 18 | 22 | 23 | 80 | 217 | |||||
| Interest expense, net | 197 | 127 | 135 | 607 | 707 | |||||
| Other income, net | (602) | (1,142) | (2,443) | (3,538) | (1,839) | |||||
| Provision (benefit) for income taxes | 332 | (5,238) | (11,134) | (23,575) | (19,302) | |||||
| Interest on trade accounts receivable | — | — | — | — | 25 | |||||
| Adjusted EBITDA | $ | 99 | $ | (274) | $ | (259) | $ | (1,688) | $ | (3,952) |
a. Includes results for Mammoth’s aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full-service transportation and remote accommodations and equipment manufacturing and corporate related activities. The Company’s corporate related activities do not generate revenue.
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Net Loss and Adjusted Loss per Share
Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company’s operating and financial performance. Management believes these measures provide meaningful information about the Company’s performance by excluding certain non-cash charges, such as impairment of goodwill and impairment of other long-lived assets, that may not be indicative of the Company’s ongoing operating results. Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.
| Three Months Ended | Years Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | ||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||
| (in thousands, except per share amounts) | ||||||||||
| Net loss, as reported | $ | (13,297) | $ | (11,861) | $ | (40,901) | $ | (101,430) | $ | (107,607) |
| Impairment of goodwill | 891 | — | — | 891 | 54,973 | |||||
| Impairment of other long-lived assets | 665 | — | 547 | 1,212 | 12,897 | |||||
| Adjusted net loss | $ | (11,741) | $ | (11,861) | $ | (40,354) | $ | (99,327) | $ | (39,737) |
| Basic loss per share, as reported | $ | (0.28) | $ | (0.26) | $ | (0.88) | $ | (2.18) | $ | (2.36) |
| Impairment of goodwill | 0.02 | — | — | 0.02 | 1.20 | |||||
| Impairment of other long-lived assets | 0.01 | — | 0.01 | 0.03 | 0.28 | |||||
| Adjusted basic loss per share | $ | (0.25) | $ | (0.26) | $ | (0.87) | $ | (2.13) | $ | (0.88) |
| Diluted loss per share, as reported | $ | (0.28) | $ | (0.26) | $ | (0.88) | $ | (2.18) | $ | (2.36) |
| Impairment of goodwill | 0.02 | — | — | 0.02 | 1.20 | |||||
| Impairment of other long-lived assets | 0.01 | — | 0.01 | 0.03 | 0.28 | |||||
| Adjusted diluted loss per share | $ | (0.25) | $ | (0.26) | $ | (0.87) | $ | (2.13) | $ | (0.88) |
14