Acuren Corp(TIC) - 2024 Q4 - Annual Results

Earnings Release Overview Financial Highlights The company reported record full-year revenue of $1.1 billion and strong Adjusted EBITDA growth, despite a net loss driven by non-recurring transaction expenses Full Year 2024 vs. 2023 Performance (Combined) | Metric | 2024 (Combined) | 2023 (Predecessor) | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,097.4 million | $1,050.1 million | +4.5% | | Net Income (Loss) | ($121.2 million) | $4.9 million | N/A | | Adjusted EBITDA | $186.7 million | $167.4 million | +11.5% | | Adjusted EBITDA Margin | 17.0% | 15.9% | +110 bps | Fourth Quarter 2024 vs. 2023 Performance | Metric | Q4 2024 (Successor) | Q4 2023 (Predecessor) | Change | | :--- | :--- | :--- | :--- | | Revenue | $262.0 million | $270.1 million | -3.0% | | Net Loss | ($15.6 million) | ($14.5 million) | N/A | | Adjusted EBITDA | $40.7 million | $40.7 million | +0.2% | | Adjusted EBITDA Margin | 15.5% | 15.1% | +40 bps | - The full-year net loss in 2024 for both Predecessor ($15.7M) and Successor ($105.5M) periods was primarily driven by non-recurring transaction-related expenses[8] - The company has redomiciled in the U.S. and its common stock began trading on the NYSE American in February 2025[2][11] Management Commentary Management highlighted a strong market position and strategic focus on high-margin services, disciplined customer selection, and leveraging recurring demand - CEO Tal Pizzey stated the company made significant progress on financial goals in 2024, including exiting lower-margin customer relationships and positioning for growth as a listed company[5] - The company's strategy focuses on expanding high-margin service offerings and leveraging the continuous demand for asset integrity services due to aging infrastructure in key markets[5] - Co-Chairman Robert A.E. Franklin highlighted the company's strong balance sheet, which provides flexibility for value-enhancing initiatives while maintaining financial discipline[9] Capital Resources, Liquidity, and 2025 Outlook The company maintains strong liquidity, repriced its term loan to save on interest, and anticipates low-to-mid-single-digit revenue growth for 2025 Liquidity Position as of Dec 31, 2024 | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $139.1 million | | Total Debt (net) | $754.8 million | | Total Available Liquidity | $214.1 million | - In January 2025, the company repriced its term loan, which is estimated to generate $5.8 million in annual cash interest expense savings[11] - 2025 Guidance: The company expects full-year 2025 revenue growth to be in the low-to-mid-single-digit percent range compared to 2024[12] Financial Statements Consolidated Balance Sheets Total assets grew significantly to $2.21 billion, driven by increased Goodwill and Intangible assets from the ASP Acuren acquisition Key Balance Sheet Items (in thousands) | Account | Dec 31, 2024 (Successor) | Dec 31, 2023 (Predecessor) | | :--- | :--- | :--- | | Cash and cash equivalents | $139,134 | $87,061 | | Goodwill | $845,939 | $511,501 | | Intangible assets, net | $740,657 | $264,335 | | Total assets | $2,207,739 | $1,262,615 | | Debt, net of current portion | $747,048 | $668,031 | | Total liabilities | $1,056,567 | $880,616 | | Total equity | $1,151,172 | $381,999 | Consolidated Statements of Operations (Full Year) The company reported a combined net loss of $121.2 million for 2024, heavily impacted by transaction costs related to its recent acquisition Full Year 2024 Statement of Operations Highlights (Combined, in thousands) | Account | 2024 (Successor + Predecessor) | 2023 (Predecessor) | | :--- | :--- | :--- | | Service revenue | $1,097,393 | $1,050,057 | | Gross profit | $265,664 | $239,523 | | Income (loss) from operations | ($47,213) | $54,501 | | Transaction costs | $41,202 | $0 | | Net loss | ($121,155) | ($6,289) | | Diluted loss per share | ($0.86) / ($3.13) | ($1.25) | Condensed Consolidated Statements of Operations (Q4) Fourth quarter revenue was $262.0 million with a net loss of $15.6 million, influenced by $11.4 million in transaction costs Q4 2024 Statement of Operations Highlights (in thousands) | Account | Q4 2024 (Successor) | Q4 2023 (Predecessor) | | :--- | :--- | :--- | | Service revenue | $262,042 | $270,134 | | Gross profit | $54,475 | $58,932 | | Income (loss) from operations | ($3,440) | $9,802 | | Transaction costs | $11,444 | $0 | | Net loss | ($15,628) | ($14,482) | | Diluted loss per share | ($0.13) | ($2.88) | Condensed Consolidated Statements of Cash Flows Operating cash flow decreased significantly, while investing activities were dominated by the $1.82 billion ASP Acuren acquisition Full Year 2024 Cash Flow Summary (Combined, in thousands) | Cash Flow Activity | 2024 (Successor + Predecessor) | 2023 (Predecessor) | | :--- | :--- | :--- | | Net cash from operating activities | $23,068 | $95,809 | | Net cash used in investing activities | ($1,892,636) | ($26,534) | | Net cash from financing activities | $1,422,164 | ($49,176) | - The primary use of cash in investing activities was the $1.82 billion acquisition of ASP Acuren[32] - Financing activities were driven by $775 million in new long-term debt and $666.6 million in proceeds from issuance of common shares, which were used to fund the acquisition[32] Non-GAAP Financial Measures and Reconciliations Explanation of Non-GAAP Measures The company uses non-GAAP measures like Combined Revenue and Adjusted EBITDA to provide a clearer view of ongoing operational performance - The company presents combined financial information to help management and investors assess ongoing financial and operational performance and trends[19] - Management uses non-GAAP measures like Combined Adjusted EBITDA to evaluate past performance, manage business segments, determine incentive compensation, and provide consistent period-to-period comparisons[21] Reconciliation of Adjusted EBITDA Combined Adjusted EBITDA for 2024 was $186.7 million, reconciled from a net loss by adding back significant non-recurring and non-cash charges Full Year 2024 Combined Adjusted EBITDA Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Combined Net Loss | ($121,155) | | + Interest, Taxes, D&A | $161,517 | | + One-time non-cash equity charges | $69,821 | | + ASP Acuren transaction expenses | $41,202 | | + Other adjustments | $35,297 | | Combined Adjusted EBITDA | $186,682 | Q4 2024 Adjusted EBITDA Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Net Loss | ($15,628) | | + Interest, Taxes, D&A | $41,448 | | + ASP Acuren transaction expenses | $11,444 | | + Other adjustments | $3,481 | | Adjusted EBITDA | $40,745 | Organic Change in Service Revenues Full-year organic service revenue grew 3.0%, while Q4 saw a 4.0% decline due to timing of work and strategic customer portfolio optimization Organic Revenue Growth Analysis | Period | Reported Change | FX Impact | Acquisition Impact | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Full Year 2024 | 4.5% | (0.5)% | 2.0% | 3.0% | | Q4 2024 | (3.0)% | (1.0)% | 2.0% | (4.0)% | - Organic change in net revenues is calculated to provide a consistent year-over-year comparison by excluding the impacts of material acquisitions and foreign currency translation[46]