Delaware | 001-33816 | 26-0287117 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number | Description | ||
99.1 | Press Release, dated August 8, 2016 |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. | ||||||
Date: August 8, 2016 | By: | /s/ Joseph M. Crabb | ||||
Name: | Joseph M. Crabb | |||||
Title: | Executive Vice President and Chief Legal Officer |
Exhibit Number | Description | ||
99.1 | Press Release, dated August 8, 2016 |
• | Second quarter revenue was $34.0 million, a decrease of approximately 27.7%, or $13.0 million, when compared with revenue of $47.0 million in the first quarter of 2016, and a 63.2% decrease, or $58.4 million, when compared with revenue of $92.4 million in the second quarter of 2015. |
• | Total costs and expenses, adjusted for special items, were $48.9 million, or a 20.2% decrease when compared with $61.3 million in the first quarter of 2016; 50.6% reduction in total costs and expenses, adjusted for special items, when compared with the second quarter of 2015. |
• | Loss from continuing operations for the second quarter was $40.6 million, or a loss of $0.60 per diluted share, compared with a loss from continuing operations of $27.3 million, or a loss of $0.98 per diluted share in the first quarter of 2016. |
• | Adjusted EBITDA from continuing operations for the second quarter was $0.3 million, a decrease of approximately 79.5% compared with adjusted EBITDA from continuing operations of $1.6 million in the first quarter of 2016. |
• | Total liquidity as of June 30, 2016 was $12.9 million. |
▪ | Approximately $19.6 million in lower payroll and related expenses, reflecting a 48% year-over-year reduction in headcount; |
▪ | Approximately $4.9 million in lower fuel expense; |
▪ | Approximately $3.2 million, or 37.9%, in lower general and administrative expenses; |
▪ | Approximately $3.1 million in lower depreciation and amortization expenses; with, |
▪ | The balance of $19.3 million related to reductions in all other direct operating expenses. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue: | |||||||||||||||
Non-rental revenue | $ | 31,369 | $ | 85,530 | $ | 75,395 | $ | 192,540 | |||||||
Rental revenue | 2,609 | 6,897 | 5,558 | 18,999 | |||||||||||
Total revenue | 33,978 | 92,427 | 80,953 | 211,539 | |||||||||||
Costs and expenses: | |||||||||||||||
Direct operating expenses | 30,283 | 71,574 | 68,900 | 159,573 | |||||||||||
General and administrative expenses | 14,204 | 9,697 | 21,656 | 22,397 | |||||||||||
Depreciation and amortization | 15,206 | 18,296 | 31,051 | 35,778 | |||||||||||
Impairment of long-lived assets | 2,664 | — | 2,664 | — | |||||||||||
Other, net | — | 429 | — | 1,112 | |||||||||||
Total costs and expenses | 62,357 | 99,996 | 124,271 | 218,860 | |||||||||||
Operating loss | (28,379 | ) | (7,569 | ) | (43,318 | ) | (7,321 | ) | |||||||
Interest expense, net | (13,973 | ) | (12,452 | ) | (26,018 | ) | (25,040 | ) | |||||||
Other income, net | 2,771 | 400 | 2,929 | 721 | |||||||||||
Loss on extinguishment of debt | (284 | ) | (1,011 | ) | (674 | ) | (1,011 | ) | |||||||
Loss from continuing operations before income taxes | (39,865 | ) | (20,632 | ) | (67,081 | ) | (32,651 | ) | |||||||
Income tax (expense) benefit | (773 | ) | (15 | ) | (828 | ) | 9 | ||||||||
Loss from continuing operations | (40,638 | ) | (20,647 | ) | (67,909 | ) | (32,642 | ) | |||||||
Loss from discontinued operations, net of income taxes | (1,290 | ) | (2,089 | ) | (1,235 | ) | (1,168 | ) | |||||||
Net loss attributable to common shareholders | $ | (41,928 | ) | $ | (22,736 | ) | $ | (69,144 | ) | $ | (33,810 | ) | |||
Net loss per common share attributable to common shareholders: | |||||||||||||||
Basic and diluted loss from continuing operations | $ | (0.60 | ) | $ | (0.75 | ) | $ | (1.42 | ) | $ | (1.18 | ) | |||
Basic and diluted loss from discontinued operations | (0.02 | ) | (0.08 | ) | (0.03 | ) | (0.04 | ) | |||||||
Net loss per basic and diluted common share | $ | (0.62 | ) | $ | (0.83 | ) | $ | (1.45 | ) | $ | (1.22 | ) | |||
Weighted average shares outstanding used in computing net loss per basic and diluted common share | 67,699 | 27,679 | 47,803 | 27,546 |
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Assets | (Note 1) | ||||||
Cash and cash equivalents | $ | 303 | $ | 39,309 | |||
Restricted cash | 5,504 | 4,250 | |||||
Accounts receivable, net | 19,996 | 42,188 | |||||
Inventories | 2,606 | 2,985 | |||||
Prepaid expenses and other receivables | 3,407 | 3,377 | |||||
Other current assets | 4,189 | 2,372 | |||||
Assets held for sale | 2,902 | — | |||||
Total current assets | 38,907 | 94,481 | |||||
Property, plant and equipment, net | 366,322 | 406,188 | |||||
Equity investments | 574 | 3,750 | |||||
Intangibles, net | 15,562 | 16,867 | |||||
Other assets | 573 | 1,333 | |||||
Total assets | $ | 421,938 | $ | 522,619 | |||
Liabilities and Shareholders' Deficit | |||||||
Accounts payable | $ | 6,173 | $ | 6,907 | |||
Accrued liabilities | 21,476 | 29,843 | |||||
Current contingent consideration | — | 8,628 | |||||
Current portion of long-term debt | 56,427 | 499,709 | |||||
Derivative warrant liability | 6,201 | — | |||||
Total current liabilities | 90,277 | 545,087 | |||||
Deferred income taxes | 317 | 270 | |||||
Long-term debt | 394,174 | 11,758 | |||||
Long-term contingent consideration | 8,500 | — | |||||
Other long-term liabilities | 3,723 | 3,775 | |||||
Total liabilities | 496,991 | 560,890 | |||||
Commitments and contingencies | |||||||
Shareholders' deficit: | |||||||
Common stock | 131 | 30 | |||||
Additional paid-in capital | 1,402,191 | 1,369,921 | |||||
Treasury stock | (19,809 | ) | (19,800 | ) | |||
Accumulated deficit | (1,457,566 | ) | (1,388,422 | ) | |||
Total shareholders' deficit | (75,053 | ) | (38,271 | ) | |||
Total liabilities and shareholders' deficit | $ | 421,938 | $ | 522,619 |
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (69,144 | ) | $ | (33,810 | ) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
Income from discontinued operations, net of income taxes | — | (906 | ) | ||||
Loss on the sale of TFI | 1,235 | 2,074 | |||||
Depreciation and amortization of intangible assets | 31,051 | 35,778 | |||||
Amortization of debt issuance costs, net | 2,587 | 2,438 | |||||
Stock-based compensation | 656 | 1,516 | |||||
Impairment of long-lived assets | 2,664 | — | |||||
Gain on sale of UGSI | (1,694 | ) | — | ||||
Loss (gain) on disposal of property, plant and equipment | 727 | (1,312 | ) | ||||
Bad debt expense | 254 | (208 | ) | ||||
Change in fair value of derivative warrant liability | (1,023 | ) | — | ||||
Loss on extinguishment of debt | 674 | 1,011 | |||||
Deferred income taxes | 48 | 1 | |||||
Other, net | (33 | ) | 316 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 21,938 | 47,719 | |||||
Prepaid expenses and other receivables | (146 | ) | (5,273 | ) | |||
Accounts payable and accrued liabilities | 118 | (8,113 | ) | ||||
Other assets and liabilities, net | (2,506 | ) | 1,105 | ||||
Net cash (used in) provided by operating activities from continuing operations | (12,594 | ) | 42,336 | ||||
Net cash used in operating activities from discontinued operations | — | (708 | ) | ||||
Net cash (used in) provided by operating activities | (12,594 | ) | 41,628 | ||||
Cash flows from investing activities: | |||||||
Proceeds from the sale of TFI | — | 78,897 | |||||
Proceeds from the sale of property, plant and equipment | 5,995 | 3,448 | |||||
Purchases of property, plant and equipment | (2,133 | ) | (10,807 | ) | |||
Proceeds from the sale of UGSI | 4,979 | — | |||||
Change in restricted cash | (1,254 | ) | (4,250 | ) | |||
Net cash provided by investing activities from continuing operations | 7,587 | 67,288 | |||||
Net cash used in investing activities from discontinued operations | — | (181 | ) | ||||
Net cash provided by investing activities | 7,587 | 67,107 | |||||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility | 76,979 | — | |||||
Payments on revolving credit facility | (130,667 | ) | (81,647 | ) | |||
Proceeds from term loan | 24,000 | — | |||||
Payments for deferred financing costs | (985 | ) | — | ||||
Payments on vehicle financing and other financing activities | (3,326 | ) | (7,765 | ) | |||
Net cash used in financing activities from continuing operations | (33,999 | ) | (89,412 | ) | |||
Net cash used in financing activities from discontinued operations | — | (105 | ) | ||||
Net cash used in financing activities | (33,999 | ) | (89,517 | ) | |||
Net (decrease) increase in cash and cash equivalents | (39,006 | ) | 19,218 | ||||
Cash and cash equivalents - beginning of period | 39,309 | 15,416 | |||||
Cash and cash equivalents - end of period | 303 | 34,634 | |||||
Less: cash and cash equivalents of discontinued operations - end of period | — | — | |||||
Cash and cash equivalents of continuing operations - end of period | $ | 303 | $ | 34,634 | |||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Loss from continuing operations | $ | (40,638 | ) | $ | (20,647 | ) | $ | (67,909 | ) | $ | (32,642 | ) | |||
Depreciation and amortization | 15,206 | 18,296 | 31,051 | 35,778 | |||||||||||
Interest expense, net | 13,973 | 12,452 | 26,018 | 25,040 | |||||||||||
Income tax expense (benefit) | 773 | 15 | 828 | (9 | ) | ||||||||||
EBITDA | (10,686 | ) | 10,116 | (10,012 | ) | 28,167 | |||||||||
Adjustments: | |||||||||||||||
Transaction-related costs, including earnout adjustments, net | 2 | 177 | (117 | ) | (132 | ) | |||||||||
Stock-based compensation | 288 | 727 | 656 | 1,516 | |||||||||||
Change in fair value of derivative warrant liability | (1,023 | ) | — | (1,023 | ) | — | |||||||||
Legal and environmental costs, net | 8,642 | 397 | 10,117 | 404 | |||||||||||
Impairment of long-lived assets | 2,664 | — | 2,664 | — | |||||||||||
Restructuring, exit and other costs | 59 | 513 | (113 | ) | 1,335 | ||||||||||
Loss on extinguishment of debt | 284 | 1,011 | 674 | 1,011 | |||||||||||
Gain on sale of UGSI | (1,694 | ) | — | (1,694 | ) | — | |||||||||
Loss (gain) on disposal of assets | 1,784 | (658 | ) | 727 | (1,312 | ) | |||||||||
Adjusted EBITDA from continuing operations | 320 | 12,283 | 1,879 | 30,989 | |||||||||||
Adjusted EBITDA from discontinued operations | — | 7 | — | 1,197 | |||||||||||
Total Adjusted EBITDA | $ | 320 | $ | 12,290 | $ | 1,879 | $ | 32,186 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Loss from discontinued operations | $ | (1,290 | ) | $ | (2,089 | ) | $ | (1,235 | ) | $ | (1,168 | ) | |||
Income tax expense | — | — | — | 265 | |||||||||||
EBITDA from discontinued operations | (1,290 | ) | (2,089 | ) | (1,235 | ) | (903 | ) | |||||||
Adjustments: | |||||||||||||||
Transaction-related costs | — | 22 | — | 26 | |||||||||||
Loss on sale of TFI | 1,290 | 2,074 | 1,235 | 2,074 | |||||||||||
Adjusted EBITDA from discontinued operations | $ | — | $ | 7 | $ | — | $ | 1,197 |
Three months ended June 30, 2016 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 18,952 | $ | 7,688 | $ | 7,338 | $ | — | $ | 33,978 | ||||||||||
Direct operating expenses | 16,232 | 8,126 | 5,925 | — | 30,283 | |||||||||||||||
General and administrative expenses | 1,695 | 339 | 973 | 11,197 | 14,204 | |||||||||||||||
Depreciation and amortization | 7,792 | 3,426 | 3,919 | 69 | 15,206 | |||||||||||||||
Operating loss | (6,767 | ) | (6,556 | ) | (3,790 | ) | (11,266 | ) | (28,379 | ) | ||||||||||
Operating margin % | (35.7 | )% | (85.3 | )% | (51.6 | )% | NA | (83.5 | )% | |||||||||||
Loss from continuing operations before income taxes | (6,818 | ) | (6,669 | ) | (3,825 | ) | (22,553 | ) | (39,865 | ) | ||||||||||
Loss from continuing operations | (6,818 | ) | (6,669 | ) | (3,825 | ) | (23,326 | ) | (40,638 | ) | ||||||||||
Depreciation and amortization | 7,792 | 3,426 | 3,919 | 69 | 15,206 | |||||||||||||||
Interest expense, net | 106 | 109 | 38 | 13,720 | 13,973 | |||||||||||||||
Income tax expense | — | — | — | 773 | 773 | |||||||||||||||
EBITDA | $ | 1,080 | $ | (3,134 | ) | $ | 132 | $ | (8,764 | ) | $ | (10,686 | ) | |||||||
Adjustments, net | 2,528 | 2,009 | 150 | 6,319 | 11,006 | |||||||||||||||
Adjusted EBITDA from continuing operations | $ | 3,608 | $ | (1,125 | ) | $ | 282 | $ | (2,445 | ) | $ | 320 | ||||||||
Adjusted EBITDA margin % | 19.0 | % | (14.6 | )% | 3.8 | % | NA | 0.9 | % |
Three months ended June 30, 2015 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 47,601 | $ | 27,411 | $ | 17,415 | $ | — | $ | 92,427 | ||||||||||
Direct operating expenses | 36,107 | 21,996 | 13,471 | — | 71,574 | |||||||||||||||
General and administrative expenses | 1,322 | 1,021 | 1,219 | 6,135 | 9,697 | |||||||||||||||
Depreciation and amortization | 8,801 | 4,060 | 5,195 | 240 | 18,296 | |||||||||||||||
Operating income (loss) | 1,371 | 295 | (2,468 | ) | (6,767 | ) | (7,569 | ) | ||||||||||||
Operating margin % | 2.9 | % | 1.1 | % | (14.2 | )% | NA | (8.2 | )% | |||||||||||
Income (loss) from continuing operations before income taxes | 1,805 | (200 | ) | (2,628 | ) | (19,609 | ) | (20,632 | ) | |||||||||||
Income (loss) from continuing operations | 1,805 | (206 | ) | (2,632 | ) | (19,614 | ) | (20,647 | ) | |||||||||||
Depreciation and amortization | 8,801 | 4,060 | 5,195 | 240 | 18,296 | |||||||||||||||
Interest expense, net | 144 | 436 | 41 | 11,831 | 12,452 | |||||||||||||||
Income tax expense | — | 6 | 4 | 5 | 15 | |||||||||||||||
EBITDA | $ | 10,750 | $ | 4,296 | $ | 2,608 | $ | (7,538 | ) | $ | 10,116 | |||||||||
Adjustments, net | 14 | 371 | (669 | ) | 2,451 | 2,167 | ||||||||||||||
Adjusted EBITDA from continuing operations | $ | 10,764 | $ | 4,667 | $ | 1,939 | $ | (5,087 | ) | $ | 12,283 | |||||||||
Adjusted EBITDA margin % | 22.6 | % | 17.0 | % | 11.1 | % | NA | 13.3 | % |
Six months ended June 30, 2016 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 43,857 | $ | 20,465 | $ | 16,631 | $ | — | $ | 80,953 | ||||||||||
Direct operating expenses | 35,790 | 19,694 | 13,416 | — | 68,900 | |||||||||||||||
General and administrative expenses | 3,547 | 1,529 | 1,893 | 14,687 | 21,656 | |||||||||||||||
Depreciation and amortization | 15,871 | 7,309 | 7,733 | 138 | 31,051 | |||||||||||||||
Operating loss | (11,351 | ) | (10,420 | ) | (6,722 | ) | (14,825 | ) | (43,318 | ) | ||||||||||
Operating margin % | (25.9 | )% | (50.9 | )% | (40.4 | )% | NA | (53.5 | )% | |||||||||||
Loss from continuing operations before income taxes | (11,470 | ) | (10,600 | ) | (6,751 | ) | (38,260 | ) | (67,081 | ) | ||||||||||
Loss from continuing operations | (11,470 | ) | (10,600 | ) | (6,751 | ) | (39,088 | ) | (67,909 | ) | ||||||||||
Depreciation and amortization | 15,871 | 7,309 | 7,733 | 138 | 31,051 | |||||||||||||||
Interest expense, net | 204 | 250 | 86 | 25,478 | 26,018 | |||||||||||||||
Income tax expense | — | — | — | 828 | 828 | |||||||||||||||
EBITDA | $ | 4,605 | $ | (3,041 | ) | $ | 1,068 | $ | (12,644 | ) | $ | (10,012 | ) | |||||||
Adjustments, net | 2,713 | 1,726 | (198 | ) | 7,650 | 11,891 | ||||||||||||||
Adjusted EBITDA from continuing operations | $ | 7,318 | $ | (1,315 | ) | $ | 870 | $ | (4,994 | ) | $ | 1,879 | ||||||||
Adjusted EBITDA margin % | 16.7 | % | (6.4 | )% | 5.2 | % | NA | 2.3 | % |
Six months ended June 30, 2015 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 117,011 | $ | 54,724 | $ | 39,804 | $ | — | $ | 211,539 | ||||||||||
Direct operating expenses | 84,532 | 43,492 | 31,549 | — | 159,573 | |||||||||||||||
General and administrative expenses | 3,378 | 2,925 | 3,297 | 12,797 | 22,397 | |||||||||||||||
Depreciation and amortization | 17,538 | 7,987 | 9,843 | 410 | 35,778 | |||||||||||||||
Operating income (loss) | 11,563 | 197 | (5,482 | ) | (13,599 | ) | (7,321 | ) | ||||||||||||
Operating margin % | 9.9 | % | 0.4 | % | (13.8 | )% | NA | (3.5 | )% | |||||||||||
Income (loss) from continuing operations before income taxes | 11,902 | (187 | ) | (5,563 | ) | (38,803 | ) | (32,651 | ) | |||||||||||
Income (loss) from continuing operations | 11,902 | (193 | ) | (5,567 | ) | (38,784 | ) | (32,642 | ) | |||||||||||
Depreciation and amortization | 17,538 | 7,987 | 9,843 | 410 | 35,778 | |||||||||||||||
Interest expense, net | 253 | 500 | 94 | 24,193 | 25,040 | |||||||||||||||
Income tax expense (benefit) | — | 6 | 4 | (19 | ) | (9 | ) | |||||||||||||
EBITDA | $ | 29,693 | $ | 8,300 | $ | 4,374 | $ | (14,200 | ) | $ | 28,167 | |||||||||
Adjustments, net | (575 | ) | 146 | (131 | ) | 3,382 | 2,822 | |||||||||||||
Adjusted EBITDA from continuing operations | $ | 29,118 | $ | 8,446 | $ | 4,243 | $ | (10,818 | ) | $ | 30,989 | |||||||||
Adjusted EBITDA margin % | 24.9 | % | 15.4 | % | 10.7 | % | NA | 14.6 | % |
Three months ended June 30, 2016 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 33,978 | $ | — | $ | 33,978 | ||||||
Direct operating expenses | 30,283 | (1,842 | ) | [A] | 28,441 | |||||||
General and administrative expenses | 14,204 | (8,933 | ) | [B] | 5,271 | |||||||
Total costs and expenses | 62,357 | (13,439 | ) | [C] | 48,918 | |||||||
Operating loss | (28,379 | ) | 13,439 | [C] | (14,940 | ) | ||||||
Loss from continuing operations | (40,638 | ) | 11,215 | [D] | (29,423 | ) | ||||||
Basic and diluted loss from continuing operations | $ | (0.60 | ) | $ | (0.43 | ) | ||||||
Loss from continuing operations | $ | (40,638 | ) | $ | (29,423 | ) | ||||||
Depreciation and amortization | 15,206 | 15,206 | ||||||||||
Interest expense, net | 13,973 | 13,973 | ||||||||||
Income tax expense | 773 | 564 | ||||||||||
EBITDA and Adjusted EBITDA from continuing operations | $ | (10,686 | ) | $ | 320 |
Description of 2016 Special Items: | ||||
[A] | Special items primarily includes the loss on sale of underutilized assets, and severance and environmental clean-up charges. | |||
[B] | Primarily attributable to stock-based compensation and non-routine legal and professional fees incurred in connection with the execution of management's plan to restructure our indebtedness. | |||
[C] | Primarily includes the aforementioned adjustments along with a long-lived asset impairment charge for assets classified as held-for-sale of $2.7 million. | |||
[D] | Primarily includes the aforementioned adjustments along with a gain of $1.0 million associated with the change in fair value of the derivative warrant liability, and a gain on the sale of Underground Solutions, Inc. of $1.7 million in the three months ended June 30, 2016. Additionally, our effective tax rate for the three months ended June 30, 2016 was 1.94% and has been applied to the special items accordingly. |
Three months ended June 30, 2015 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 92,427 | $ | — | $ | 92,427 | ||||||
Direct operating expenses | 71,574 | 658 | [E] | 72,232 | ||||||||
General and administrative expenses | 9,697 | (1,208 | ) | [F] | 8,489 | |||||||
Total costs and expenses | 99,996 | (979 | ) | [G] | 99,017 | |||||||
Operating loss | (7,569 | ) | 979 | [G] | (6,590 | ) | ||||||
Loss from continuing operations | (20,647 | ) | 2,169 | [H] | (18,478 | ) | ||||||
Basic and diluted loss from continuing operations | $ | (0.75 | ) | $ | (0.67 | ) | ||||||
Loss from continuing operations | $ | (20,647 | ) | $ | (18,478 | ) | ||||||
Depreciation and amortization | 18,296 | 18,296 | ||||||||||
Interest expense, net | 12,452 | 12,452 | ||||||||||
Income tax expense | 15 | 13 | ||||||||||
EBITDA and Adjusted EBITDA from continuing operations | $ | 10,116 | $ | 12,283 |
Description of 2015 Special Items: | ||||
[E] | Special items includes a gain on sale for the disposal of certain transportation related assets. | |||
[F] | Primarily attributable to stock-based compensation, non-routine litigation expenses and certain costs associated with an amendment to our ABL facility. | |||
[G] | Primarily includes the aforementioned adjustments, and a charge of approximately $0.4 million associated with our restructuring initiative and other exit related costs from certain shale basins. | |||
[H] | Primarily includes the aforementioned adjustments along with a charge of $1.0 million in connection with the write-off of a portion of the unamortized deferred financing costs as a result of an amendment to our ABL Facility, and a charge related to a prior acquisition earnout reserve of $0.2 million. Additionally, our effective tax rate for the three months ended June 30, 2015 was zero percent and has been applied to the special items accordingly. |
Six months ended June 30, 2016 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 80,953 | $ | — | $ | 80,953 | ||||||
Direct operating expenses | 68,900 | (1,239 | ) | [A] | 67,661 | |||||||
General and administrative expenses | 21,656 | (10,159 | ) | [B] | 11,497 | |||||||
Total costs and expenses | 124,271 | (14,062 | ) | [C] | 110,209 | |||||||
Operating loss | (43,318 | ) | 14,062 | [C] | (29,256 | ) | ||||||
Loss from continuing operations | (67,909 | ) | 12,034 | [D] | (55,875 | ) | ||||||
Basic and diluted loss from continuing operations | $ | (1.42 | ) | $ | (1.17 | ) | ||||||
Loss from continuing operations | $ | (67,909 | ) | $ | (55,875 | ) | ||||||
Depreciation and amortization | 31,051 | 31,051 | ||||||||||
Interest expense, net | 26,018 | 26,018 | ||||||||||
Income tax expense | 828 | 685 | ||||||||||
EBITDA and Adjusted EBITDA from continuing operations | $ | (10,012 | ) | $ | 1,879 |
Description of 2016 Special Items: | ||||
[A] | Special items primarily includes the loss on sale of underutilized assets, and severance and environmental clean-up charges. | |||
[B] | Primarily attributable to stock-based compensation and non-routine legal and professional fees incurred in connection with the execution of management's plan to restructure our indebtedness. | |||
[C] | Primarily includes the aforementioned adjustments along with a long-lived asset impairment charge for assets classified as held-for-sale of $2.7 million. | |||
[D] | Primarily includes the aforementioned adjustments along with a charge of $0.7 million in connection with the write-off of a portion of the unamortized deferred financing costs as a result of an amendment to our ABL Facility, a gain of $1.0 million associated with the change in fair value of the derivative warrant liability, and a gain on the sale of Underground Solutions, Inc. for $1.7 million in the three months ended June 30, 2016. Additionally, our effective tax rate for the six months ended June 30, 2016 was 1.23% and has been applied to the special items accordingly. |
Six months ended June 30, 2015 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 211,539 | $ | — | $ | 211,539 | ||||||
Direct operating expenses | 159,573 | 1,312 | [E] | 160,885 | ||||||||
General and administrative expenses | 22,397 | (2,143 | ) | [F] | 20,254 | |||||||
Total costs and expenses | 218,860 | (1,943 | ) | [G] | 216,917 | |||||||
Operating loss | (7,321 | ) | 1,943 | [G] | (5,378 | ) | ||||||
Loss from continuing operations | (32,642 | ) | 2,822 | [H] | (29,820 | ) | ||||||
Basic and diluted loss from continuing operations | $ | (1.18 | ) | $ | (1.08 | ) | ||||||
Loss from continuing operations | $ | (32,642 | ) | $ | (29,820 | ) | ||||||
Depreciation and amortization | 35,778 | 35,778 | ||||||||||
Interest expense, net | 25,040 | 25,040 | ||||||||||
Income tax benefit | (9 | ) | (9 | ) | ||||||||
EBITDA and Adjusted EBITDA from continuing operations | $ | 28,167 | $ | 30,989 |
Description of 2015 Special Items: | ||||
[E] | Special items include a gain on sale related to the disposal of certain transportation related assets. | |||
[F] | Primarily attributable to stock-based compensation, non-routine litigation expenses and certain costs associated with an amendment to our ABL Facility. | |||
[G] | Primarily includes the aforementioned adjustments, and a charge of approximately $1.1 million associated with our restructuring initiative and other exit related costs from certain shale basins. | |||
[H] | Primarily includes the aforementioned adjustments along with a charge of $1.0 million in connection with the write-off of a portion of the unamortized deferred financing costs as a result of an amendment to our ABL Facility, and a net reduction related to a prior acquisition earnout reserve of $0.1 million. Additionally, our effective tax rate for the six months ended June 30, 2015 was zero percent and has been applied to the special items accordingly. |
Six Months Ended | ||||||||
June 30, | ||||||||
2016 | 2015 | |||||||
Net cash (used in) provided by operating activities from continuing operations | $ | (12,594 | ) | $ | 42,336 | |||
Less: net cash capital expenditures, [1] | 3,862 | (7,359 | ) | |||||
Free Cash Flow | $ | (8,732 | ) | $ | 34,977 |
[1] | Purchases of property, plant and equipment, net of proceeds received from sales of property, plant and equipment |
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