Nine(NINE)2024-03-07 22:15Financial Performance - Fourth quarter 2023 revenue was $144.1 million, net loss of $(10.3) million, and adjusted EBITDA of $14.6 million, within the original guidance range of $137.0 to $147.0 million[2][3] - Full year 2023 revenue was $609.5 million, net loss of $(32.2) million, and adjusted EBITDA of $73.0 million[5][7] - Net income (loss) for 2023 was $(32.213) million, a significant decline from $14.393 million in 2022[26] - Adjusted EBITDA for 2023 was $72.966 million, down from $93.738 million in 2022[28] - Adjusted gross profit for 2023 was $118.776 million, compared to $136.289 million in 2022[34] Revenue and Sales Growth - The total number of StingerTM Dissolvable units sold increased by approximately 18% year-over-year[4][5] - International revenue increased by approximately 16% year-over-year[4][5] Cash Flow and Liquidity - The company reported net cash provided by operating activities of $45.5 million for the full year 2023[11] - Net cash provided by operating activities increased to $45.509 million in 2023 from $16.672 million in 2022[26] - The company had a total liquidity position of $58.9 million as of December 31, 2023, including $30.8 million in cash and cash equivalents and $28.1 million of availability under the revolving credit facility[12] - Cash and cash equivalents increased by $13.395 million to $30.840 million at the end of 2023, compared to $17.445 million at the end of 2022[26] Capital Expenditures and Investments - Total capital expenditures for the full year 2023 were approximately $22.3 million, below the original guidance of $25 to $35 million[11] - The company generated ROIC of (10.8)% and adjusted ROIC of 8.8% for the full year 2023[7] - Adjusted ROIC for 2023 was 8.8%, down from 16.3% in 2022[31] - Adjusted ROIC is defined as adjusted after-tax net operating profit (loss) divided by average total capital[37] - Adjusted after-tax net operating profit (loss) includes adjustments for goodwill, intangible asset, and property impairments, transaction costs, interest expenses, restructuring charges, and other items[37] - Total capital is calculated as book value of equity plus book value of debt minus cash and cash equivalents[37] - Adjusted ROIC is used to evaluate operating income generation relative to invested capital and assists in capital allocation decisions[37] - The company revised the titles of Adjusted ROIC and adjusted after-tax net operating profit (loss) to clearly identify them as non-GAAP measures[37] Balance Sheet and Debt - Total assets decreased to $401.984 million in 2023 from $426.834 million in 2022[24] - Total liabilities decreased to $437.614 million in 2023 from $450.341 million in 2022[24] - Long-term debt decreased to $320.520 million in 2023 from $338.031 million in 2022[24] - Accounts receivable, net decreased to $88.449 million in 2023 from $105.277 million in 2022[24] Product and Market Strategy - The company introduced new technology with the Pincer Hybrid Frac Plug and aims to gain market share with this tool in 2024[4] Gross Profit and Operating Metrics - The company reported gross profit of $80.2 million and adjusted gross profit of $118.8 million for the full year 2023[7]