Mammoth Energy Services(TUSK)2024-11-01 20:04Revenue Performance - Total revenue for the three months ended September 30, 2024, was $40,015 thousand, a decrease of 38.5% compared to $64,959 thousand for the same period in 2023[20]. - Services revenue for the three months ended September 30, 2024, was $34,069 thousand, down 37.0% from $54,025 thousand in the prior year[20]. - Product revenue for the three months ended September 30, 2024, was $4,909 thousand, a decrease of 54.0% compared to $10,682 thousand in the prior year[20]. - For the nine months ended September 30, 2024, total revenue was $134,732,000, down from $256,710,000 in the same period of 2023, a decrease of about 47.5%[176][177]. - The company experienced intersegment revenues of $1,641,000 for the three months ended September 30, 2024, compared to $909,000 in the same period of 2023[173][174]. Financial Losses - Operating loss for the three months ended September 30, 2024, was $(12,550) thousand, compared to an operating loss of $(8,862) thousand for the same period in 2023[21]. - Net loss for the nine months ended September 30, 2024, was $191.846 million, compared to a net income of $2.793 million for the same period in 2023[29]. - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.50), while for the same period in 2023, it was $(0.02)[23]. - Comprehensive loss for the three months ended September 30, 2024, was $(23.917) million, compared to $(1.363) million for the same period in 2023[22]. - The company reported a loss before income taxes of $(204,446,000) for the nine months ended September 30, 2024, compared to a loss of $(11,799,000) in the same period of 2023, indicating a significant increase in losses[176][177]. Asset and Equity Changes - Total current assets decreased to $255,188 thousand as of September 30, 2024, from $496,925 thousand at December 31, 2023, representing a decline of 48.6%[19]. - Total equity decreased to $268,678 thousand as of September 30, 2024, from $460,100 thousand at December 31, 2023, a decrease of 41.6%[19]. - Total assets as of September 30, 2024, were $442,978,000, reflecting a decrease from previous reporting periods[178]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $4,165 thousand as of September 30, 2024, from $16,556 thousand at December 31, 2023, a decline of 74.8%[19]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $39.301 million, an increase from $24.951 million in the same period in 2023[29]. - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, was $6.165 million, down from $10.527 million at the end of the same period in 2023[29]. Liabilities and Debt - Total liabilities decreased to $174,300 thousand as of September 30, 2024, from $238,379 thousand at December 31, 2023, a reduction of 26.9%[19]. - Total debt as of September 30, 2024, was $49.0 million, an increase from $42.8 million on December 31, 2023, representing a 14.0% increase[93]. - The new term credit facility had outstanding borrowings of $50.9 million as of September 30, 2024, compared to $45.0 million on December 31, 2023, reflecting a 10.4% increase[103]. Operational Challenges - The Company has been involved in ongoing litigation with PREPA regarding outstanding payments for restoration services, which has affected its financial results[45]. - The Company operates primarily in North America, with services concentrated in key oil and gas regions such as the Permian Basin and the Marcellus Shale[33]. - The infrastructure services segment is heavily reliant on capital spending by electric utility companies, which can significantly impact the Company's financial condition[33]. Customer Concentration - Customer A and Customer B accounted for 81% and 90% of total revenues for the three and nine months ended September 30, 2024, respectively, indicating significant customer concentration risk[52]. Legal and Regulatory Issues - Foreman Electric Services, Inc. alleges $250 million in damages against Mammoth Inc. and Cobra due to wrongful interference related to FEMA[155]. - Cobra has been served with 13 lawsuits in Puerto Rico, with a judgment ordering payment of approximately $9.0 million for construction excise taxes[157]. Segment Performance - The Company operates four reportable segments: Well Completion, Infrastructure, Sand, and Drilling, with distinct service offerings[169]. - The Well Completion segment primarily services the Utica Shale, Marcellus Shale, and mid-continent region[169]. - The Infrastructure segment provides electric utility infrastructure services across various regions in the United States[169]. - The Sand segment mines and sells sand for hydraulic fracturing, servicing areas including the Permian Basin and Montney Shale[169]. Miscellaneous Financial Metrics - Total SG&A expenses for the nine months ended September 30, 2024, were $114.96 million, a decrease from $29.15 million in the same period of 2023[110]. - The company recognized lease revenue of $0.5 million and $1.7 million during the three and nine months ended September 30, 2024, respectively, compared to $0.8 million and $2.4 million for the same periods in 2023[124].