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Nine(NINE) - 2023 Q4 - Annual Results
NINENine(NINE)2024-03-07 22:15

Financial Performance - Fourth quarter 2023 revenue was 144.1million,netlossof144.1 million, net loss of (10.3) million, and adjusted EBITDA of 14.6million,withintheoriginalguidancerangeof14.6 million, within the original guidance range of 137.0 to 147.0million[2][3]−Fullyear2023revenuewas147.0 million[2][3] - Full year 2023 revenue was 609.5 million, net loss of (32.2)million,andadjustedEBITDAof(32.2) million, and adjusted EBITDA of 73.0 million[5][7] - Net income (loss) for 2023 was (32.213)million,asignificantdeclinefrom(32.213) million, a significant decline from 14.393 million in 2022[26] - Adjusted EBITDA for 2023 was 72.966million,downfrom72.966 million, down from 93.738 million in 2022[28] - Adjusted gross profit for 2023 was 118.776million,comparedto118.776 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 45.5millionforthefullyear2023[11]−Netcashprovidedbyoperatingactivitiesincreasedto45.5 million for the full year 2023[11] - Net cash provided by operating activities increased to 45.509 million in 2023 from 16.672millionin2022[26]−Thecompanyhadatotalliquiditypositionof16.672 million in 2022[26] - The company had a total liquidity position of 58.9 million as of December 31, 2023, including 30.8millionincashandcashequivalentsand30.8 million in cash and cash equivalents and 28.1 million of availability under the revolving credit facility[12] - Cash and cash equivalents increased by 13.395millionto13.395 million to 30.840 million at the end of 2023, compared to 17.445millionattheendof2022[26]CapitalExpendituresandInvestments−Totalcapitalexpendituresforthefullyear2023wereapproximately17.445 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 25to25 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 401.984millionin2023from401.984 million in 2023 from 426.834 million in 2022[24] - Total liabilities decreased to 437.614millionin2023from437.614 million in 2023 from 450.341 million in 2022[24] - Long-term debt decreased to 320.520millionin2023from320.520 million in 2023 from 338.031 million in 2022[24] - Accounts receivable, net decreased to 88.449millionin2023from88.449 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 80.2millionandadjustedgrossprofitof80.2 million and adjusted gross profit of 118.8 million for the full year 2023[7]