Expro(US:XPRO)2024-07-25 20:10Financial Performance - Total revenue for the three months ended June 30, 2024, was $469.6 million, an increase from $396.9 million in the same period of 2023, representing a growth of 18.3%[99] - Segment EBITDA for the three months ended June 30, 2024, was $123.3 million, compared to $93.6 million for the same period in 2023, reflecting a year-over-year increase of 31.7%[97] - Well management revenue for the three months ended June 30, 2024, was $321.2 million, up from $253.2 million in the same period of 2023, indicating a growth of 26.8%[99] - North and Latin America (NLA) segment revenue for the three months ended June 30, 2024, was $156.99 million, compared to $134.83 million in the same period of 2023, marking a growth of 16.4%[112] - Middle East and North Africa (MENA) segment revenue for the three months ended June 30, 2024, was $81.4 million, an increase from $59.2 million in the same period of 2023, representing a growth of 37.8%[112] - The company reported income before income taxes of $29.2 million for the three months ended June 30, 2024, compared to $21.8 million for the same period in 2023, a growth of 33.9%[97] - The company recorded a net income of $15.3 million for the three months ended June 30, 2024, compared to $9.3 million for the same period in 2023, representing a 64.5% increase[170] - Basic earnings per share for the three months ended June 30, 2024, was $0.13, up from $0.09 in the same period of 2023, reflecting a 44.4% increase[170] Costs and Expenses - Corporate costs for the three months ended June 30, 2024, were $33.6 million, up from $24.8 million in the same period of 2023, reflecting a 35.5% increase[97] - Amortization expense for intangible assets was $11.7 million for the three months ended June 30, 2024, compared to $9.4 million for the same period in 2023, indicating a 24.5% increase[155] Assets and Liabilities - Accounts receivable, net increased to $542,325 thousand as of June 30, 2024, from $478,887 thousand as of December 31, 2023, reflecting a growth of 13.3%[135] - Total inventories rose to $171,493 thousand as of June 30, 2024, compared to $143,325 thousand as of December 31, 2023, marking a 19.6% increase[135] - The total value of property, plant, and equipment, net, was $535,538 thousand as of June 30, 2024, up from $513,222 thousand as of December 31, 2023, indicating a 4.4% growth[125] - The total goodwill increased to $342,576 thousand as of June 30, 2024, from $247,687 thousand as of December 31, 2023, representing a significant increase of 38.2%[141] - The company reported a total of $90,763 thousand in other assets as of June 30, 2024, compared to $70,711 thousand as of December 31, 2023, reflecting a 28.4% increase[135] Revenue Recognition - The company recognized $16.2 million in revenue from deferred revenue for the three months ended June 30, 2024, compared to $17.1 million for the same period in 2023[100] - Deferred revenue decreased to $6,712 thousand as of June 30, 2024, from $27,206 thousand as of December 31, 2023, a decline of 75.3%[124] Financing and Debt - The company has amended its revolving credit facility agreement, increasing total commitments to $250 million, with the ability to raise it to $350 million[144] - The company established an incremental facility increasing its revolving credit facility from $250.0 million to $340.0 million, with $256.7 million available for loans and $83.3 million for letters of credit[146] - The company drew down approximately $76.1 million from the new facility to partially finance the Coretrax Acquisition[146] - As of June 30, 2024, the company had $121.1 million of borrowings outstanding under the Amended and Restated Facility Agreement, with an effective interest rate of 7.6%[163] - The company is required to maintain a minimum interest cover ratio of 4.0 to 1.0 and a maximum total net leverage ratio of 2.50 to 1.0, tested quarterly[145] - The company maintained compliance with all debt covenants as of June 30, 2024[145] Employee and Operational Information - The company has approximately 8,000 employees and operates in about 60 countries, providing energy services across the entire well life cycle[90] - The company introduced several innovative well intervention services, including CoilHose™, Octopoda™, and Galea™, aimed at enhancing production and well integrity[93] Regulatory and Compliance - The company recorded a loss contingency of approximately $8.0 million related to potential civil penalties from the SEC[165] - The Company paid $8.0 million to the SEC in the second quarter of 2023 for disgorgement, prejudgment interest, and civil penalty[177] Pension Contributions - The Company contributed $1.3 million and $2.6 million to defined benefit schemes for the three and six months ended June 30, 2024, compared to $1.3 million and $2.5 million for the same periods in 2023[178]