Nine(US:NINE)2025-03-06 20:09Financial Data and Key Metrics Changes - Company revenue for the year was $554.1 million, with a net loss of $41.1 million or negative $1.11 per diluted share [24] - Adjusted EBITDA for the year was $53.2 million, while Q4 revenue was $141.4 million, an increase of approximately 2% quarter-over-quarter [25][11] - Adjusted EBITDA for Q4 was $14.1 million, relatively flat compared to Q3 [25] Business Line Data and Key Metrics Changes - Cementing revenue for Q4 was $54.8 million, an increase of approximately 7%, with 1,121 cementing jobs completed, a 12% increase versus Q3 [30] - Wireline revenue for Q4 was $27.6 million, a decrease of approximately 1%, with 6,713 wireline stages completed, a 6% increase [30] - Coiled tubing revenue for Q4 was $25.8 million, a decrease of approximately 7%, with utilization at 44% [31] Market Data and Key Metrics Changes - The U.S. market ended the year with around 590 rigs, a decline of over 30 rigs for the year, following a drop of over 150 rigs in 2023 [6] - Low natural gas prices, averaging around $2.19 for the year, contributed to lower activity levels in the U.S. market [7] Company Strategy and Development Direction - The company implemented a two-pronged strategy to drive profitability in a declining rig count environment, focusing on cost-cutting measures and market share gains [10] - The Cementing division was the largest driver of revenue and profitability gains over the last two quarters, with market share increasing to approximately 19% [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating revenue and adjusted EBITDA growth due to improved natural gas prices and sustained market share gains [35][36] - The company expects Q1 revenue between $146 million and $152 million, driven primarily by cementing and completion tools [38] Other Important Information - The company launched its first sustainability report in 2024, reflecting its commitment to operational excellence and community impact [22] - A refresh of the Board of Directors was announced, welcoming two new members with extensive industry experience [41][42] Q&A Session Summary Question: Adoption rates of dissolvable plugs in different basins - Management noted that hot basins like Haynesville and Eagle Ford show higher adoption rates for dissolvable plugs, benefiting from supportive gas prices [49][50] Question: Impact of tariffs on input costs - Management acknowledged that if tariffs remain, there will be impacts on the supply chain, particularly concerning steel and cement [56][59] Question: Q1 revenue growth drivers - The primary driver for Q1 growth is cement, with additional contributions expected from completion tools and coiled tubing [66]