Nine(US:NINE)2022-05-04 21:43Revenue Growth - Revenues increased by $50.3 million, or 76%, to $116.9 million for Q1 2022 compared to Q1 2021, driven by activity and pricing improvements [94]. - Cementing revenue rose by $22.3 million, or 97%, with total cement job count increasing by 62% compared to Q1 2021 [95]. - Coiled tubing revenue increased by $10.6 million, or 97%, as total days worked rose by 44% compared to Q1 2021 [95]. - Active frac crew counts increased by 29% in Q1 2022 compared to Q1 2021, contributing to revenue growth [94]. - Revenues rose to $116.9 million in Q1 2022 from $66.6 million in Q1 2021, while adjusted gross profit increased to $22.6 million from $4.3 million [117]. Cost and Expenses - Cost of revenues increased by $32.0 million, or 51%, to $94.3 million for Q1 2022, primarily due to increased activity and cost inflation [96]. - Adjusted gross profit increased by $18.3 million to $22.6 million for Q1 2022, reflecting revenue growth and cost management [97]. - General and administrative expenses rose by $1.6 million to $11.8 million for Q1 2022, mainly due to increased employee costs and professional fees [97]. - Labor costs increased by $10.1 million, reflecting the challenges of labor shortages and inflation in the industry [96]. Financial Performance - Adjusted EBITDA increased by $15.6 million to $12.2 million in Q1 2022, reflecting changes in revenues and expenses [103]. - Return on Invested Capital (ROIC) was 2.1% for Q1 2022, a significant improvement from (23.1)% in Q1 2021 [114]. - The company recorded an income tax provision of approximately $0.1 million in Q1 2022, compared to less than $0.1 million in Q1 2021 [102]. Liquidity and Capital Structure - As of March 31, 2022, the company had $19.9 million in cash and cash equivalents and $54.7 million available under the 2018 ABL Credit Facility, totaling $74.6 million in liquidity [119]. - The company had $320.3 million in Senior Notes outstanding as of March 31, 2022, with semi-annual interest payments of $14.0 million due on May 1 and November 1 [124]. - The company plans to address its liquidity needs through refinancing, seeking additional capital, or asset sales, amid concerns about its ability to meet obligations [121]. - The company had $20.0 million of outstanding borrowings under the 2018 ABL Credit Facility as of March 31, 2022, with an availability of approximately $54.7 million [129]. - The 2018 ABL Credit Facility permits aggregate borrowings of up to $200.0 million, with a Canadian tranche sub-limit of $25.0 million [128]. - The company was in compliance with all covenants under the 2018 ABL Credit Agreement at March 31, 2022 [131]. Cash Flow - For the three months ended March 31, 2022, the net cash used in operating activities was $6.5 million, an increase of $1.3 million compared to $5.2 million in the same period of 2021 [134]. - Net cash provided by investing activities was $1.3 million in the first three months of 2022, compared to a net cash used of $1.6 million in the same period of 2021, reflecting a $2.9 million change [135]. - Net cash provided by financing activities was $3.6 million during the first three months of 2022, a change of $12.7 million compared to $9.1 million used in financing activities in the first three months of 2021 [136]. - Cash flows from operations showed a $16.0 million increase adjusted for non-cash items compared to the first three months of 2021 [134]. - The company experienced a $17.3 million increase in cash used for working capital, primarily due to an increase in accounts receivable [134]. Non-Operating Items - Non-operating expenses were $7.9 million in Q1 2022, down from non-operating income of $9.1 million in Q1 2021, mainly due to a $17.6 million gain on extinguishment of debt in the prior year [101]. - Intangible amortization decreased to $3.9 million in Q1 2022 from $4.1 million in Q1 2021, primarily due to certain intangible assets being fully amortized [99]. - The company reported a loss of $5 thousand on revaluation of contingent liability in Q1 2022, compared to a gain of $0.2 million in Q1 2021, attributed to an increase in fair value of earnout from the acquisition of Frac Technology AS [100].