Expro(XPRO) - 2024 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 2024 was $423 million, down 10% sequentially and up 14% year-over-year[4]. - Total revenue for Q3 2024 was$ 422.828 million, a decrease of 10% from $469.642 million in Q2 2024 and an increase of 14.3% from$ 369.818 million in Q3 2023[34]. - Total revenue for the three months ended September 30, 2024, was $422,828,000, an increase of 14.3% compared to$ 369,818,000 in Q3 2023[47]. Net Income and Profitability - Net income for Q3 2024 was $16 million, with a net income margin of 4%, compared to 3% in Q2 2024[5]. - Net income for Q3 2024 was$ 16.275 million, up from $15.286 million in Q2 2024 and a loss of$ 13.886 million in Q3 2023[34]. - The company reported a net income margin of 4% for Q3 2024, compared to a net loss margin of (4%) in Q3 2023[47]. - The diluted earnings per share for Q3 2024 was $0.14, compared to a loss of$ (0.13) in Q3 2023[49]. Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $85 million, down 10% sequentially but up 69% year-over-year, with an adjusted EBITDA margin of 20%[6]. - Adjusted EBITDA for Q3 2024 was$ 85,036,000, representing a margin of 20%, consistent with Q2 2024[47]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $247,046,000, compared to$ 163,734,000 for the same period in 2023[47]. Guidance and Future Expectations - Full-year 2024 revenue guidance is refined to a range of $1.72 billion to$ 1.75 billion, with adjusted EBITDA guidance of $335 million to$ 350 million[8]. - Q4 2024 revenue is expected to be between $440 million and$ 470 million, implying sequential growth of 8% and year-on-year growth of 12%[8]. Operational Metrics - Operating income for Q3 2024 was $26.117 million, compared to$ 27.697 million in Q2 2024 and a loss of $1.572 million in Q3 2023[34]. - Total operating costs and expenses for Q3 2024 were$ 396.711 million, down from $441.945 million in Q2 2024 and up from$ 371.390 million in Q3 2023[34]. - The company incurred merger and integration expenses of $1.437 million in Q3 2024, significantly lower than$ 8.789 million in Q2 2024[34]. Segment Performance - The NLA segment revenue decreased by 11% to $139 million in Q3 2024, while the MENA segment revenue increased by 7% to$ 87 million[15][19]. - Segment revenue for NLA was $139,397 thousand in Q3 2024, accounting for 33% of total revenue, compared to$ 105,252 thousand and 28% in Q3 2023[37]. - Well management revenue for the three months ended September 30, 2024, was $263,560 thousand, accounting for 62% of total revenue, compared to 69% in the same period of 2023[41]. Cash and Liquidity - Consolidated cash and cash equivalents as of September 30, 2024, totaled$ 167 million, with total liquidity of $303 million[22]. - Cash and cash equivalents at the end of the period were$ 166,985 thousand, compared to $257,011 thousand at the end of Q3 2023, a decrease of 35%[36]. - Operating cash flow provided$ 72,078 thousand in Q3 2024, compared to $105,528 thousand in Q3 2023, indicating a decrease of 31.7%[36]. Assets and Liabilities - Total assets increased to$ 2,343,620 thousand as of September 30, 2024, up from $2,013,007 thousand at December 31, 2023, representing a growth of 16.3%[35]. - Total liabilities rose to$ 860,291 thousand as of September 30, 2024, up from $717,134 thousand at December 31, 2023, an increase of 19.9%[35]. - The company reported an increase in accounts receivable to$ 532,469 thousand as of September 30, 2024, compared to $469,119 thousand at December 31, 2023, a rise of 13.5%[35]. Employee and Operational Commitment - The company has over 8,500 employees and operates in approximately 60 countries, providing services across the entire well life cycle[28]. - The company emphasizes its commitment to best-in-class safety and service quality in its operations[28]. - Future growth strategies include leveraging the benefits of the Coretrax acquisition and achieving anticipated synergies[29].