Nine(US:NINE)2024-05-06 21:05Financial Performance - First quarter 2024 revenues were $142.1 million, with a net loss of $(8.1) million or $(0.24) per diluted share [2]. - Net loss for the three months ended March 31, 2024, was $8,055 thousand, an improvement from a net loss of $10,305 thousand for the previous quarter [26]. - Revenues for the three months ended March 31, 2024, were $142,120 thousand, slightly down from $144,073 thousand in the previous quarter [31]. - EBITDA for the same period was $14,111 thousand, compared to $12,187 thousand in the prior quarter, reflecting a 15.8% increase [26]. - Adjusted EBITDA for Q1 2024 was $15.0 million, reflecting a stable performance despite a flat US rig count [5]. - Adjusted EBITDA increased to $15,034 thousand from $14,648 thousand, representing a growth of 2.6% quarter-over-quarter [26]. - Gross profit improved to $17,055 thousand, up from $16,217 thousand, indicating a 5.2% increase [31]. - Adjusted gross profit rose to $26,114 thousand from $25,559 thousand, marking a 2.2% increase [31]. Liquidity and Capital Structure - The company reported a liquidity position of $37.5 million as of March 31, 2024, with $10.2 million in cash and cash equivalents [9]. - Cash and cash equivalents decreased to $10,237 thousand from $30,840 thousand, reflecting a significant reduction in liquidity [24]. - Total debt as of March 31, 2024, was $353,805 thousand, a decrease from $359,859 thousand at the end of the previous quarter [29]. - Capital expenditures for Q1 2024 totaled $5.6 million, while net cash used in operating activities was $(8.8) million [8]. - Net cash used in operating activities was $8,837 thousand, a decline from $24,324 thousand in the prior quarter [24]. Market Outlook - The company expects Q2 revenue to decline compared to Q1 due to pricing pressures in the cementing business and slowdowns in natural gas markets [4]. - The company aims to diversify revenue streams towards completion tools and international markets to enhance resilience against market fluctuations [4]. Asset Management - As of March 31, 2024, total assets were $380.4 million, down from $401.9 million at the end of 2023 [22]. - The company reported a return on invested capital (ROIC) of (10.9)% and adjusted ROIC of 6.0% for Q1 2024 [6]. - Adjusted ROIC improved to 6.0% from 3.9%, indicating better efficiency in generating returns on invested capital [29]. Product Performance - The company sold over 60,000 Stinger Dissolvable Plug units since its introduction in Q1 2020 [5]. - Gross profit increased quarter over quarter, primarily due to an 11% increase in coil tubing revenue [4].