Nine(NINE) - 2024 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2024 was $132.4 million, with a net loss of $(14.0) million and adjusted EBITDA of $9.7 million[1] - The company reported a net loss of $14,041,000 for the three months ended June 30, 2024, compared to a net loss of $8,055,000 for the previous quarter, indicating a deterioration in performance[13] - Adjusted EBITDA for the quarter was $9,735,000, down from $15,034,000 in the prior quarter, representing a decline of 35.5%[14] - Revenues for the quarter were $132,401,000, a decrease from $142,120,000 in the previous quarter, reflecting a decline of 6.0%[16] - Gross profit decreased to $11,418,000 from $17,055,000, a decline of 33.3%[16] Liquidity and Capital Structure - Total liquidity as of June 30, 2024, was $50.8 million, consisting of $26.0 million in cash and cash equivalents and $24.8 million available under the revolving credit facility[5] - Cash and cash equivalents rose significantly to $26,027,000 from $10,237,000, marking an increase of 154.5%[13] - Total current liabilities increased to $82,963,000 from $73,854,000, an increase of 12.8%[12] - The company’s total liabilities rose to $431,437,000, up from $423,724,000, indicating a growth of 1.7%[12] Operational Highlights - The US rig count has declined significantly, with over 40 rigs exiting the market since the end of 2023, impacting revenue and earnings[2] - Cementing revenue decreased slightly in Q2 due to the rig decline, but historically recovers quickly with market improvements[3] - Coiled tubing revenue declined due to reduced activity levels in the Permian and Haynesville basins[3] - The average natural gas price was below $2.15 for the first half of 2024, leading to lower activity levels across all basins[3] - The company surpassed 300 total refrac jobs run to-date, establishing itself as a top provider in the US refrac market[3] Capital Expenditures - Capital expenditures for Q2 2024 totaled $2.5 million, with updated full-year capex guidance reduced to $10 - $15 million[5] Shareholder Activity - The company sold approximately 4.2 million shares under its equity offering program, generating about $6.8 million in net proceeds[6] Financial Metrics - Adjusted ROIC for the quarter was -1.5%, compared to 6.0% in the previous quarter, showing a significant decline[15] - Adjusted EBITDA is defined as EBITDA further adjusted for various charges and expenses, providing insights into the company's financial condition and operational performance[17] - Adjusted gross profit (loss) excludes depreciation and amortization, offering a clearer view of core operating performance[18] - Adjusted return on invested capital (adjusted ROIC) quantifies operating income relative to invested capital, aiding in capital resource allocation decisions[19]