ProFrac (US:ACDC)2024-08-09 20:31Financial Performance - Total revenue for Q2 2024 was $579.4 million, a decrease of 18.3% from $709.2 million in Q2 2023[122]. - Net loss for Q2 2024 was $66.7 million, compared to a loss of $2.9 million in Q2 2023, including a goodwill impairment charge of $67.7 million[122][137]. - Stimulation services revenue decreased by 17% in Q2 2024 to $505.6 million, primarily due to lower active fleets and pricing[124]. - Proppant production revenue fell by 37% in Q2 2024 to $69.5 million, attributed to lower average prices and reduced volumes sold[125]. - Manufacturing revenue increased by 80% in Q2 2024 to $55.9 million, driven by higher intercompany demand[126]. - Cash provided by operating activities for the first half of 2024 was $192.6 million, down 50.3% from $387.2 million in the same period of 2023[122]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $192.6 million, down from $387.2 million in 2023, representing a decrease of 50.3%[152]. Expenses and Impairments - Selling, general and administrative expenses decreased by 14.7% in Q2 2024 to $54.1 million compared to $63.5 million in Q2 2023[132][134]. - Goodwill impairment of $67.7 million was recorded due to reduced activity levels in the Haynesville basin, impacting the proppant reporting unit[137]. - Litigation expenses for the three months ended June 30, 2024, were $9.2 million, compared to $7.4 million for the same period in 2023, indicating a 24.3% increase[139]. Debt and Liquidity - Total long-term debt rose to $1,234.4 million as of June 30, 2024, an increase of $126.5 million from December 31, 2023[122]. - The company had $1,234.4 million in long-term debt outstanding as of June 30, 2024, with $174.4 million due within the next twelve months[155]. - As of June 30, 2024, the company had $19.2 million in cash and cash equivalents and $142.0 million available under its revolving credit facility, totaling $161.2 million in liquidity[148]. - A 1% increase in interest rates on variable-rate debt as of June 30, 2024, would increase annual interest payments by approximately $11.4 million[164]. Capital Expenditures and Commitments - Capital expenditures for the six months ended June 30, 2024, were $121.8 million, with full-year estimates ranging from $150 million to $200 million for maintenance and an additional $100 million for growth initiatives[157]. - Purchase commitments as of June 30, 2024, were $32.2 million for 2024 and $44.7 million for 2025, related to minimum sand commitments and hydraulic fracturing equipment[159]. Tax and Interest - The effective tax rate for the six months ended June 30, 2024, was 27.2%, compared to 22.8% in the same period in 2023[145]. - Interest expense for the six months ended June 30, 2024, was $77.2 million, consistent with $75.9 million in the same period in 2023, showing a slight increase of 1.7%[142]. Acquisitions - The company acquired BPC for $39.8 million and AST for $174.0 million in June 2024, expanding its service capabilities[123].