Cactus(WHD) - 2024 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2024 was $290.4 million, a sequential increase of 5.5% from $274.1 million in Q1 2024[2] - Operating income rose to $79.8 million, reflecting a 27.5% operating income margin, up from 22.8% in Q1 2024[2] - Net income for the quarter was $63.1 million, with a net income margin of 21.7%, compared to 18.2% in the previous quarter[2] - Adjusted EBITDA was $103.6 million, representing a margin of 35.7%, an increase from 34.8% in Q1 2024[2] - Total revenues for Q2 2024 were $290,389 thousand, a decrease of 5% from $305,819 thousand in Q2 2023[17] - Net income for Q2 2024 was $63,059 thousand, compared to $32,459 thousand in Q2 2023, representing a 94% increase[17] - Earnings per Class A share - diluted for Q2 2024 was $0.75, up from $0.38 in Q2 2023, reflecting a 97% increase[17] - Adjusted net income for the same period was $65,192 thousand, compared to $59,600 thousand in the previous quarter and $67,279 thousand in the same quarter last year[23] - Total operating income for the three months ended June 30, 2024, was $79,819 thousand, compared to $62,550 thousand for the same period last year, indicating a growth of 27.7%[32] Segment Performance - Pressure Control revenue increased by $12.2 million, or 6.9%, sequentially, driven by improved customer drilling efficiencies[5] - Spoolable Technologies revenue grew by $4.6 million, or 4.7%, sequentially, with operating income increasing by 83.3% due to lower expenses related to the FlexSteel acquisition[6] - Operating income for the Pressure Control segment was $55,669 thousand in Q2 2024, down from $62,888 thousand in Q2 2023, a decrease of 11%[17] - The Spoolable Technologies segment reported an operating income of $30,041 thousand in Q2 2024, recovering from an operating loss of $(6,018) thousand in Q2 2023[17] - Revenue from Spoolable Technologies segment was $103,716 thousand for the three months ended June 30, 2024, an increase from $99,095 thousand in the previous quarter, representing a growth of 2.6%[32] - The company reported an operating income (loss) margin of 29.0% for the Spoolable Technologies segment for the three months ended June 30, 2024, compared to 16.5% in the previous quarter[32] Cash Flow and Capital Expenditures - Cash flow from operations was $78.0 million, with cash and cash equivalents totaling $246.5 million and no bank debt outstanding as of June 30, 2024[9] - Net capital expenditures for Q2 2024 were $7.2 million, with full-year expectations set between $35 million to $45 million[9] - Cash and cash equivalents increased to $246,503 thousand as of June 30, 2024, from $133,792 thousand at the end of 2023, marking an 84% increase[19] - Net cash provided by operating activities for the six months ended June 30, 2024, was $164,218 thousand, slightly down from $168,518 thousand in the same period of 2023[21] Assets and Liabilities - Total assets rose to $1,626,393 thousand as of June 30, 2024, compared to $1,522,561 thousand at the end of 2023, indicating a 7% increase[19] - Total liabilities increased to $471,597 thousand as of June 30, 2024, from $457,791 thousand at the end of 2023, a rise of 3%[19] - The company reported a deferred tax asset of $206,409 thousand as of June 30, 2024, compared to $204,852 thousand at the end of 2023, showing a slight increase[19] Dividend and Future Outlook - The Board approved an 8% increase in the quarterly dividend to $0.13 per share, reflecting confidence in future performance[3] - The company anticipates stable U.S. land activity levels in Q3 2024, with potential revenue moderation in Pressure Control due to lower drilling activity[3] Adjusted Metrics - Adjusted EBITDA for the three months ended June 30, 2024, was $103,637 thousand, an increase from $95,332 thousand in the previous quarter but a decrease from $115,419 thousand in the same quarter last year[27] - Adjusted EBITDA margin for the same period was 35.7%, compared to 34.8% in the previous quarter and 37.7% in the same quarter last year[27] - Diluted earnings per share, as adjusted, was $0.81 for the three months ended June 30, 2024, compared to $0.75 in the previous quarter and $0.84 in the same quarter last year[23] - Total Adjusted EBITDA for the six months ended June 30, 2024, was $198,969 thousand, compared to $194,830 thousand for the same period last year, showing a slight increase of 2.2%[32] Other Expenses - Corporate and other expenses totaled $(5,891) thousand for the three months ended June 30, 2024, compared to $(5,518) thousand in the previous quarter, indicating an increase in expenses[32] - The company reported a remeasurement loss on earn-out liability of $2,876 thousand for the three months ended June 30, 2024, compared to $13,304 thousand in the previous quarter[27] - The company incurred transaction-related expenses of $2,191 thousand in the same quarter last year, which were not present in the current quarter[27]