Kodiak Gas Services(US:KGS)2024-11-07 22:27Revenue and Growth - Total revenues for the three months ended September 30, 2024, were $324.647 million, a 40.5% increase from $230.983 million in the same period of 2023[16] - Contract services revenue increased to $284.313 million for the three months ended September 30, 2024, compared to $186.673 million in the prior year, representing a 52.3% growth[16] - For the nine months ended September 30, 2024, the company's revenue increased to $946.9 million, up 3.8% from $912.3 million in the same period in 2023[36] - Total revenues rose by $93.7 million (40.6%) to $324.6 million for the three months ended September 30, 2024, compared to $231.0 million in the prior year[162] Expenses and Losses - Operating expenses for the three months ended September 30, 2024, totaled $258.568 million, up from $170.025 million, reflecting a 52.0% increase[16] - Interest expense for the three months ended September 30, 2024, was $(53.991) million, compared to $(39.710) million in the same period of 2023, indicating a 36.0% increase[16] - Total other expenses, net for the three months ended September 30, 2024, were $(74.474) million, compared to $(31.288) million in the same period of 2023, reflecting a significant increase in expenses[16] - Net loss attributable to common shareholders for the three months ended September 30, 2024, was $(5.648) million, compared to net income of $21.766 million in the same period of 2023[16] - Basic earnings per share for the three months ended September 30, 2024, was $(0.07), down from $0.28 in the prior year[16] - Selling, general and administrative expenses surged by $15.9 million (80.8%) to $35.5 million for the three months ended September 30, 2024, compared to $19.6 million in the prior year[170] Assets and Equity - As of June 30, 2023, total stockholders' equity was $192,875,000, reflecting a net income of $17,517,000 for the quarter[18] - By September 30, 2023, total stockholders' equity increased to $1,171,792,000, with a net income of $21,766,000 for the quarter[18] - As of September 30, 2024, the Company's total assets increased to $4.5 billion compared to $3.2 billion as of September 30, 2023[138] - The weighted average shares of common stock outstanding for the three months ended September 30, 2024, were 84,292,083, compared to 76,731,868 in the same period of 2023, an increase of 9.9%[16] Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2024, were $209.502 million, slightly up from $203.699 million in the prior year[21] - Borrowings on debt instruments amounted to $2.297 billion, significantly higher than $756.418 million in the prior year, indicating a substantial increase in financing activities[21] - Total long-term debt stood at $2.6 billion as of September 30, 2024, with $1.9 billion due in 2028 and $750 million due in 2029[198] - The Company issued $750 million in 2029 Senior Notes with a 7.25% interest rate on February 2, 2024, which are not subject to mandatory redemption or sinking fund requirements[76] Acquisitions and Impairments - The acquisition of CSI Compressco LP was completed on April 1, 2024, for a total consideration of $342.3 million, which included the issuance of equity shares[24] - The company reported a long-lived asset impairment of $9.921 million for the three months ended September 30, 2024[16] - Goodwill acquired from the CSI Acquisition was recorded at $107.979 million, reflecting strategic benefits expected from the merger[31] - Long-lived asset impairment recorded was $9.9 million for the nine months ended September 30, 2024, with no impairment recorded in the same period of 2023[184] Capital Expenditures - Capital expenditures for the three months ended September 30, 2024, were $86.5 million, an increase from $51.5 million in the same period of 2023[138] - Growth capital expenditures were $214.9 million for the nine months ended September 30, 2024, up from $124.0 million in the same period of 2023[196] - Maintenance capital expenditures increased to $51.3 million for the nine months ended September 30, 2024, compared to $28.1 million in the prior year[196] Tax and Compliance - The Company recorded an income tax benefit of $2.2 million for the three months ended September 30, 2024, compared to an expense of $7.9 million in the same period of 2023[126] - The effective tax rate for the three months ended September 30, 2024, was approximately 26.0%, slightly down from 26.6% in the same period of 2023[126] - The Company was in compliance with all covenants under the ABL Facility and 2029 Senior Notes as of September 30, 2024[75][78] Stock and Dividends - The Company declared a cash dividend of $0.41 per share for the quarterly period ended September 30, 2024, payable on November 8, 2024[116] - The Company repurchased 1,000,000 shares of common stock at $25.00 per share for a total of $25 million on September 11, 2024[99] - A total of 6,375,000 shares of common stock have been reserved for issuance under the Omnibus Incentive Plan, with 2,394,649 shares granted as of September 30, 2024[105]