KLX Energy Services(US:KLXE)2024-10-31 20:26Financial Performance - Revenue for Q3 2024 totaled $188.9 million, a 4.8% increase from Q2 2024 revenue of $180.2 million[7] - Net loss for Q3 2024 was $(8.2) million, with an adjusted net loss of $(6.4) million[8] - Adjusted EBITDA for Q3 2024 was $27.8 million, compared to $27.0 million in Q2 2024, resulting in an adjusted EBITDA margin of 14.7%[8] - Revenues for Q3 2024 were $188.9 million, a decrease of 14.4% compared to $220.6 million in Q3 2023[25] - Operating income for Q3 2024 was $1.1 million, down from $16.4 million in Q3 2023, indicating a significant decline in profitability[25] - Net loss for Q3 2024 was $8.2 million, compared to a net income of $7.6 million in Q3 2023, reflecting a substantial shift in financial performance[25] - Adjusted EBITDA for Q3 2024 was $27.8 million, compared to $27.0 million in Q2 2024 and $36.7 million in Q3 2023, reflecting a decline in profitability[39] - Adjusted EBITDA margin for Q3 2024 was 14.7%, down from 15.0% in Q2 2024 and 16.6% in Q3 2023[39] - Consolidated net loss for Q3 2024 was $8.2 million, compared to a loss of $8.0 million in Q2 2024 and a profit of $7.6 million in Q3 2023[38] Segment Performance - The Rocky Mountains segment generated revenue of $67.9 million, a 10.6% sequential increase from Q2 2024[10] - The Southwest segment reported revenue of $68.6 million, reflecting a (2)% sequential decrease from Q2 2024[11] - The Northeast/Mid-Con segment achieved revenue of $52.4 million, a 7.2% sequential increase from Q2 2024[12] - Rocky Mountains operating income for Q3 2024 was $9.7 million, down from $10.5 million in Q2 2024 and $17.7 million in Q3 2023[40] - Southwest operating income for Q3 2024 was $0.7 million, a decrease from $2.6 million in Q2 2024 and $4.8 million in Q3 2023[42] - Northeast/Mid-Con operating income for Q3 2024 was $2.0 million, recovering from a loss of $2.5 million in Q2 2024 but down from $5.2 million in Q3 2023[43] - Corporate and other operating loss for Q3 2024 was $11.3 million, consistent with the loss in Q3 2023 but worse than the loss of $9.2 million in Q2 2024[45] Cash Flow and Liquidity - Total current assets decreased to $254.8 million in Q3 2024 from $290.3 million in Q2 2024, indicating a decline in liquidity[26] - Cash and cash equivalents were $82.7 million as of September 30, 2024, down from $112.5 million at the end of Q2 2024[26] - Net cash flow provided by operating activities decreased to $16.8 million for the three months ended September 30, 2024, down from $22.2 million in the previous quarter and $25.6 million a year ago[50] - Unlevered free cash flow for the three months ended September 30, 2024, was $7.5 million, significantly lower than $19.4 million in the previous quarter and $21.1 million a year ago[50] - Current assets as of September 30, 2024, totaled $254.8 million, a slight increase from $251.3 million as of June 30, 2024, but down from $290.3 million a year ago[51] - Net working capital improved to $51.0 million as of September 30, 2024, compared to $42.2 million as of June 30, 2024, and $47.2 million as of December 31, 2023[51] Debt and Liabilities - Total debt outstanding as of September 30, 2024, was $285.2 million, with a cash balance of $82.7 million[16] - Total liabilities increased to $484.3 million in Q3 2024 from $464.4 million in Q2 2024, suggesting rising financial obligations[26] - Total debt as of September 30, 2024, was $285.2 million, slightly up from $284.9 million as of June 30, 2024, and $284.3 million as of December 31, 2023[52] - Net debt increased to $202.5 million as of September 30, 2024, compared to $198.0 million as of June 30, 2024, and $171.8 million as of December 31, 2023[52] - The net leverage ratio remained stable at 1.8 as of September 30, 2024, consistent with the previous quarter and improved from 1.9 as of December 31, 2023[54] Future Outlook - The company anticipates a sequential revenue decline of 10% to 14% for Q4 2024 due to seasonal factors[5] - Discussions with customers regarding their 2025 drilling and production programs indicate positive momentum for the upcoming year[6] - Future performance is subject to significant risks, including demand fluctuations and commodity price volatility, which could impact revenue and profitability[24] - The company is focused on executing its long-term growth strategy and integrating acquisitions to enhance operational capabilities[24] - The company continues to focus on cost management and operational efficiency to improve future performance[48]