Mammoth Energy Services(US:TUSK)2021-11-05 20:59Financial Performance - Total revenue for Q3 2021 was $57.485 million, a decrease of 18.5% compared to $70.534 million in Q3 2020[18]. - Services revenue decreased to $52.417 million in Q3 2021 from $55.279 million in Q3 2020, reflecting a decline of 3.6%[18]. - Net loss for Q3 2021 was $40.901 million, compared to a net income of $3.430 million in Q3 2020[18]. - The company reported an operating loss of $57.660 million for Q3 2021, compared to an operating loss of $10.707 million in Q3 2020[18]. - For the nine months ended September 30, 2021, the net loss was $88,131,000, an improvement from a net loss of $95,746,000 in the same period of 2020, representing a decrease of approximately 6.8%[22]. - Revenue from external customers for the nine months ended September 30, 2021, was $171.730 million, a decrease of 24.7% from $228.026 million for the same period in 2020[148]. - The company reported a loss before income taxes of $114.501 million for the nine months ended September 30, 2021, compared to a loss of $104.725 million for the same period in 2020[148]. - The company reported a net loss of $40.9 million for the three months ended September 30, 2021, compared to a net income of $3.4 million for the same period in 2020[171]. - The operating loss for the three months ended September 30, 2021 was $57.7 million, compared to an operating loss of $10.7 million for the same period in 2020, primarily due to $31.4 million in bad debt expense[189]. Assets and Liabilities - Total current assets decreased to $426.037 million as of September 30, 2021, down from $464.748 million at December 31, 2020, a decline of 8.3%[17]. - Total liabilities decreased to $252.243 million as of September 30, 2021, compared to $261.235 million at December 31, 2020, a reduction of 3.8%[17]. - The company’s total equity decreased to $476.264 million as of September 30, 2021, down from $563.327 million at December 31, 2020, a decline of 15.4%[17]. - As of September 30, 2021, total assets were $728.507 million, down from $824.562 million as of December 31, 2020[148]. - Long-term debt decreased to $79.195 million as of September 30, 2021, down from $81.338 million as of December 31, 2020, a reduction of about 2.6%[74]. Cash Flow and Expenses - Cash and cash equivalents decreased to $7.953 million as of September 30, 2021, down from $14.822 million at December 31, 2020, a decline of 46.4%[17]. - Cash flows from operating activities resulted in a net cash used of $15,764,000 for the nine months ended September 30, 2021, compared to a net cash provided of $1,782,000 in 2020[22]. - Total SG&A expense for the three months ended September 30, 2021, was $41.9 million, compared to $12.2 million for the same period in 2020, reflecting a significant increase[84]. - Selling, general and administrative expenses rose to $74.7 million for the nine months ended September 30, 2021, compared to $36.7 million for the same period in 2020[193]. - Total lease expense for the nine months ended September 30, 2021, was $8.9 million, down from $13.9 million in the same period in 2020[93]. Revenue Streams and Operations - The primary revenue streams include infrastructure services, well completion services, natural sand proppant services, and drilling services[41]. - The company provided infrastructure services primarily in the northeastern, southwestern, midwestern, and western regions of the United States, indicating a broad operational footprint[25]. - The company’s infrastructure services division provides critical services to the electric utility and oil and gas industries, enhancing its market positioning[152]. - Infrastructure services revenue declined by $20.1 million, or 46%, to $23.5 million, primarily due to a decrease in storm restoration revenue[172]. - Well completion services revenue increased by $6.9 million, or 44%, to $22.7 million, driven by a 53% increase in the number of stages completed[173][174]. - Natural sand proppant services revenue rose by $2.4 million, or 40%, to $8.4 million, attributed to a 365% increase in tons of sand sold[175][176]. Bad Debt and Receivables - The company reported a bad debt expense of $41,650,000 for the nine months ended September 30, 2021, significantly higher than $2,306,000 in the same period of 2020[22]. - Customer A accounted for 82% of accounts receivable as of September 30, 2021, up from 71% in 2020[37]. - The bad debt provision for the nine months ended September 30, 2021, was $41.6 million, primarily related to contracts with Gulfport[85]. - The company recognized net revenue totaling $14.8 million and bad debt expense of $2.9 million during the three months ended March 31, 2021, due to contract modifications with Gulfport[45]. Legal and Regulatory Matters - The company is involved in ongoing litigation related to tax assessments and construction excise taxes in Puerto Rico, which may impact financial conditions[122][125]. - The Company is involved in multiple class action lawsuits alleging failure to pay overtime wages, with ongoing arbitration proceedings related to these claims[127]. - The Company is cooperating with investigations by the SEC and DOJ related to criminal charges against a former president of Cobra Acquisitions LLC, but cannot predict the outcome or impact on its business[131]. - A settlement was reached in the securities litigation for a cash payment of $11.0 million, fully covered under the Company's directors' and officers' insurance policy[129]. Market Conditions and Future Outlook - The company anticipates a competitive and challenging market for oilfield services due to the gradual OPEC+ supply boost and ongoing economic recovery uncertainties[154]. - Funding for infrastructure projects remains strong, with optimism regarding a new federal infrastructure bill[161]. - The company is focused on organic growth opportunities and accretive acquisitions to create value for shareholders[152]. - The ongoing transformation towards an industrial-based company includes expanding into equipment manufacturing and fiber optic services[153].