Ranger Energy Services(RNGR) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2024 was $153.0 million, an 11% increase from $138.1 million in Q2 2024, but a 7% decrease from $164.4 million in Q3 2023[2] - Net income for Q3 2024 was $8.7 million, or $0.39 per fully diluted share, an 85% increase from $4.7 million in Q2 2024, but a decrease from $9.4 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $25.1 million, a 20% increase from $21.0 million in Q2 2024 and a 5% increase from $24.0 million in Q3 2023[2] - Operating income for the three months ended September 30, 2024, was $12.9 million, down from $11.7 million in the same period of 2023, reflecting a decrease of 10.3%[30] - Net income for the three months ended September 30, 2024, was $8.7 million, compared to $9.4 million for the same period in 2023, representing a decline of 7.4%[30] - Basic earnings per share for the three months ended September 30, 2024, was $0.39, down from $0.38 in the same period of 2023[30] - Net income for the nine months ended September 30, 2024, was $12.6 million, a decrease of 41.5% compared to $21.7 million in the same period of 2023[32] Segment Performance - High Specification Rigs segment revenue was $86.7 million in Q3 2024, an increase of $4.0 million from Q2 2024 and $7.5 million from Q3 2023[12] - Wireline Services segment revenue was $30.3 million in Q3 2024, a 24% increase from $24.5 million in Q2 2024, but a 43% decrease from $53.2 million in Q3 2023[14] - Processing Solutions and Ancillary Services segment revenue was $36.0 million in Q3 2024, a 17% increase from $30.9 million in Q2 2024 and a 13% increase from $32.0 million in Q3 2023[17] - Net income for the High Specification Rigs segment was $33.4 million, while the total net income was $12.6 million, compared to a loss of $27.6 million in the previous period[39] - Adjusted EBITDA for the High Specification Rigs segment was $51.5 million, with a total adjusted EBITDA of $57.0 million, reflecting a significant increase from the previous period[39] Cash Flow and Capital Management - Free Cash Flow for Q3 2024 was $10.8 million, with year-to-date Free Cash Flow of $23.1 million[2] - The company maintained zero net debt and returned over 81% of Free Cash Flow to shareholders year-to-date through dividends and share buybacks[6] - Year-to-date capital expenditures were $28.7 million, with approximately $10 million allocated toward growth capital expenditures for modern equipment and technology updates[20] - The company paid dividends of $3.4 million to Class A Common Stock shareholders, an increase from $1.2 million in the same period of 2023[32] - Free Cash Flow for the three months ended September 30, 2024, was $10.8 million, compared to a negative $2.8 million in the same period last year[42] - Free Cash Flow conversion as a percentage of EBITDA was 43% for the latest quarter, compared to a negative 12% in the previous year[42] Balance Sheet and Assets - Total current assets as of September 30, 2024, were $132.7 million, a slight decrease from $135.4 million as of December 31, 2023[31] - Total liabilities as of September 30, 2024, were $106.3 million, compared to $106.2 million as of December 31, 2023, indicating a marginal increase[31] - Retained earnings increased to $37.5 million as of September 30, 2024, up from $28.4 million as of December 31, 2023[31] - Cash and cash equivalents as of September 30, 2024, were $14.8 million, a decrease from $15.7 million as of December 31, 2023[31] - The company’s total assets as of September 30, 2024, were $373.9 million, slightly down from $378.0 million as of December 31, 2023[31] Expenses and Other Financial Metrics - The company reported a total cost of services of $122.0 million for the three months ended September 30, 2024, down from $134.8 million in the same period of 2023, a decrease of 9.9%[30] - The company incurred depreciation and amortization expenses of $33.3 million for the nine months ended September 30, 2024, up from $29.3 million in 2023[32] - The company reported a depreciation and amortization expense of $33.3 million, with $16.9 million attributed to High Specification Rigs[39] - Interest expense for the total was $2.1 million, with no interest expense reported for the High Specification Rigs segment[39] - The total income tax expense was $5.0 million, with no tax expense reported for the High Specification Rigs segment[39] - The company reported a gain on disposal of property and equipment amounting to a loss of $1.7 million[39]