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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, $0.01 par value | NES | NYSE American |
¨ | Emerging growth company |
¨ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description | ||
99.1 |
Exhibit Number | Description | ||
99.1 | Press Release, dated March 9, 2020 |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. | ||||||
Date: March 9, 2020 | By: | /s/ Joseph M. Crabb | ||||
Name: | Joseph M. Crabb | |||||
Title: | Executive Vice President and Chief Legal Officer |
• | For the full year ended 2019, NES generated revenue of $168.2 million versus $197.5 million for the full year ended 2018. |
• | For the full year ended 2019, net loss improved $4.3 million to $54.9 million compared to $59.3 million for the full year ended 2018, a 7% improvement year over year. |
• | For the full year ended 2019, adjusted EBITDA increased $0.9 million to $17.4 million versus $16.5 million for the full year ended 2018, a 6% increase year over year. |
• | Total disposal volumes for the year ended 2019 increased to 134 MBpd versus 111 MBpd in the year ended 2018. |
• | Fourth quarter of 2019 revenue decreased 24.2%, or $11.9 million when compared to the same period in the prior year. |
• | Net loss for the fourth quarter of 2019 was $37.5 million compared to a net loss of $8.8 million in the fourth quarter of 2018, primarily a result of a $29.5 million non-cash impairment charge taken in the fourth quarter of 2019 to write-off goodwill established as part of the Company’s fresh start accounting entries in 2017 and as a result of Clearwater acquisition in 2018. |
• | Adjusted EBITDA for the fourth quarter of 2019 was $3.1 million, a decrease of $3.0 million compared with $6.1 million in the fourth quarter of 2018. |
• | Total liquidity available as of December 31, 2019 was $17.5 million. The Company had nothing borrowed under either of its available lines of credit. |
• | Made $4.9 million of principal payments in 2019. |
• | Gross capital expenditures of $8.2 million during the full year ended 2019, including the purchase of new trucks as well as expenditures to extend the useful life and productivity of our fleet, equipment and disposal wells. With the conclusion of these investments in 2019, the Company had replaced or upgraded 25% of the water hauling truck fleet and implemented new transportation management software and GPS tracking systems in all areas of operations. |
• | Reduced non-revenue generating workforce by 8% during 2019. |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue: | |||||||||||||||
Service revenue | $ | 33,440 | $ | 45,252 | $ | 152,541 | $ | 181,793 | |||||||
Rental revenue | 3,833 | 3,949 | 15,697 | 15,681 | |||||||||||
Total revenue | 37,273 | 49,201 | 168,238 | 197,474 | |||||||||||
Costs and expenses: | |||||||||||||||
Direct operating expenses | 29,648 | 38,447 | 131,019 | 158,896 | |||||||||||
General and administrative expenses | 5,335 | 7,327 | 20,864 | 38,510 | |||||||||||
Depreciation and amortization | 8,843 | 9,703 | 36,183 | 46,434 | |||||||||||
Impairment of long-lived assets | 529 | 252 | 766 | 4,815 | |||||||||||
Impairment of goodwill | 29,518 | — | 29,518 | — | |||||||||||
Other, net | — | 2 | (10 | ) | 1,119 | ||||||||||
Total costs and expenses | 73,873 | 55,731 | 218,340 | 249,774 | |||||||||||
Operating loss | (36,600 | ) | (6,530 | ) | (50,102 | ) | (52,300 | ) | |||||||
Interest expense, net | (1,230 | ) | (2,278 | ) | (5,227 | ) | (5,973 | ) | |||||||
Other income, net | 45 | 213 | 502 | 896 | |||||||||||
Reorganization items, net | — | (70 | ) | (200 | ) | (1,679 | ) | ||||||||
Loss before income taxes | (37,785 | ) | (8,665 | ) | (55,027 | ) | (59,056 | ) | |||||||
Income tax benefit (expense) | 261 | (138 | ) | 90 | (207 | ) | |||||||||
Net loss | $ | (37,524 | ) | $ | (8,803 | ) | $ | (54,937 | ) | $ | (59,263 | ) | |||
Earnings per common share: | |||||||||||||||
Net loss per basic common share | $ | (2.39 | ) | $ | (0.72 | ) | $ | (3.50 | ) | $ | (5.01 | ) | |||
Net loss per diluted common share | $ | (2.39 | ) | $ | (0.72 | ) | $ | (3.50 | ) | $ | (5.01 | ) | |||
Weighted average shares outstanding: | |||||||||||||||
Basic | 15,731 | 12,226 | 15,676 | 11,829 | |||||||||||
Diluted | 15,731 | 12,226 | 15,676 | 11,829 |
December 31, | |||||||
2019 | 2018 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 4,788 | $ | 7,302 | |||
Restricted cash | 922 | 656 | |||||
Accounts receivable, net | 26,493 | 31,392 | |||||
Inventories | 3,177 | 3,358 | |||||
Prepaid expenses and other receivables | 3,264 | 2,435 | |||||
Other current assets | 231 | 1,582 | |||||
Assets held for sale | 2,664 | 2,782 | |||||
Total current assets | 41,539 | 49,507 | |||||
Property, plant and equipment, net | 190,817 | 215,640 | |||||
Operating lease assets | 2,886 | — | |||||
Equity investments | 39 | 41 | |||||
Intangibles, net | 640 | 1,112 | |||||
Goodwill | — | 29,518 | |||||
Other assets | 178 | 118 | |||||
Total assets | $ | 236,099 | $ | 295,936 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 5,633 | $ | 9,061 | |||
Accrued and other current liabilities | 10,064 | 16,704 | |||||
Current portion of long-term debt | 6,430 | 38,305 | |||||
Current contingent consideration | — | 500 | |||||
Total current liabilities | 22,127 | 64,570 | |||||
Long-term debt | 30,005 | 27,628 | |||||
Noncurrent operating lease liabilities | 1,457 | — | |||||
Deferred income taxes | 91 | 181 | |||||
Long-term contingent consideration | 500 | — | |||||
Other long-term liabilities | 7,487 | 7,130 | |||||
Total liabilities | 61,667 | 99,509 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 158 | 122 | |||||
Additional paid-in capital | 337,628 | 303,463 | |||||
Treasury stock | (436 | ) | — | ||||
Accumulated deficit | (162,918 | ) | (107,158 | ) | |||
Total shareholders’ equity | 174,432 | 196,427 | |||||
Total liabilities and shareholders’ equity | $ | 236,099 | $ | 295,936 |
Year Ended | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (54,937 | ) | $ | (59,263 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 36,183 | 46,434 | |||||
Amortization of debt issuance costs, net | 328 | 186 | |||||
Accrued interest added to debt principal | — | 119 | |||||
Stock-based compensation | 2,026 | 12,717 | |||||
Impairment of long-lived assets | 766 | 4,815 | |||||
Impairment of goodwill | 29,518 | — | |||||
Gain on sale of UGSI | — | (75 | ) | ||||
Gain on disposal of property, plant and equipment | (1,967 | ) | (895 | ) | |||
Bad debt recoveries | (22 | ) | (328 | ) | |||
Change in fair value of derivative warrant liability | (34 | ) | (443 | ) | |||
Deferred income taxes | (90 | ) | 265 | ||||
Other, net | 340 | 355 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 4,921 | 1,798 | |||||
Prepaid expenses and other receivables | (729 | ) | 800 | ||||
Accounts payable and accrued liabilities | (11,014 | ) | 3,634 | ||||
Other assets and liabilities, net | 1,230 | (670 | ) | ||||
Net cash provided by operating activities | 6,519 | 9,449 | |||||
Cash flows from investing activities: | |||||||
Proceeds from the sale of property, plant and equipment | 6,979 | 19,140 | |||||
Purchases of property, plant and equipment | (8,243 | ) | (12,241 | ) | |||
Proceeds from the sale of UGSI | — | 75 | |||||
Cash paid for acquisitions, net of cash acquired | — | (42,292 | ) | ||||
Net cash used in investing activities | (1,264 | ) | (35,318 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from Successor First and Second Lien Term Loans | — | 10,000 | |||||
Payments on Successor First and Second Lien Term Loans | (4,949 | ) | (13,434 | ) | |||
Proceeds from Successor revolving facility | 184,912 | 226,371 | |||||
Payments on Successor revolving facility | (184,912 | ) | (226,371 | ) | |||
Proceeds from Bridge Term Loan | — | 32,500 | |||||
Payments on Bridge Term Loan | (31,382 | ) | |||||
Payments for debt issuance costs | — | (167 | ) | ||||
Issuance of stock | 31,057 | — | |||||
Payments on finance leases and other financing activities | (2,229 | ) | (1,856 | ) | |||
Net cash (used in) provided by financing activities | (7,503 | ) | 27,043 | ||||
Change in cash, cash equivalents and restricted cash | (2,248 | ) | 1,174 | ||||
Cash and cash equivalents, beginning of period | 7,302 | 5,488 | |||||
Restricted cash, beginning of period | 656 | 1,296 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 7,958 | 6,784 | |||||
Cash and cash equivalents, end of period | 4,788 | 7,302 | |||||
Restricted cash, end of period | 922 | 656 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 5,710 | $ | 7,958 |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss | $ | (37,524 | ) | $ | (8,803 | ) | $ | (54,937 | ) | $ | (59,263 | ) | |||
Depreciation and amortization | 8,843 | 9,703 | 36,183 | 46,434 | |||||||||||
Interest expense, net | 1,230 | 2,278 | 5,227 | 5,973 | |||||||||||
Income tax (benefit) expense | (261 | ) | 138 | (90 | ) | 207 | |||||||||
EBITDA | (27,712 | ) | 3,316 | (13,617 | ) | (6,649 | ) | ||||||||
Adjustments: | |||||||||||||||
Transaction-related costs | 530 | 846 | 444 | 1,291 | |||||||||||
Stock-based compensation | 286 | 1,225 | 2,026 | 12,717 | |||||||||||
Change in fair value of derivative warrant liability | (2 | ) | (120 | ) | (34 | ) | (443 | ) | |||||||
Reorganization items, net [1] | — | 70 | 200 | 1,679 | |||||||||||
Legal and environmental costs, net | — | 111 | 53 | (341 | ) | ||||||||||
Impairment of long-lived assets | 529 | 252 | 766 | 4,815 | |||||||||||
Impairment of goodwill | 29,518 | — | 29,518 | — | |||||||||||
Restructuring, exit and other costs | — | 2 | (10 | ) | 1,119 | ||||||||||
Gain on the sale of UGSI | — | — | — | (75 | ) | ||||||||||
Integration, severance and rebranding costs | 59 | 371 | 59 | 3,308 | |||||||||||
(Gain) loss on disposal of assets | (139 | ) | 24 | (1,967 | ) | (895 | ) | ||||||||
Total Adjusted EBITDA | $ | 3,069 | $ | 6,097 | $ | 17,438 | $ | 16,526 |
[1] | Reorganization items, net represents the costs related to the chapter 11 filing incurred after the May 1, 2017 filing date. |
Three months ended December 31, 2019 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 21,686 | $ | 10,836 | $ | 4,751 | $ | — | $ | 37,273 | ||||||||||
Direct operating expenses | 17,324 | 8,764 | 3,560 | — | 29,648 | |||||||||||||||
General and administrative expenses | 1,392 | 658 | 279 | 3,006 | 5,335 | |||||||||||||||
Depreciation and amortization | 4,185 | 2,603 | 2,051 | 4 | 8,843 | |||||||||||||||
Operating loss | (6,137 | ) | (23,579 | ) | (3,874 | ) | (3,010 | ) | (36,600 | ) | ||||||||||
Operating margin % | (28.3 | )% | (217.6 | )% | (81.5 | )% | NA | (98.2 | )% | |||||||||||
Loss before income taxes | (6,298 | ) | (23,702 | ) | (3,928 | ) | (3,857 | ) | (37,785 | ) | ||||||||||
Net loss | (6,298 | ) | (23,702 | ) | (3,928 | ) | (3,596 | ) | (37,524 | ) | ||||||||||
Depreciation and amortization | 4,185 | 2,603 | 2,051 | 4 | 8,843 | |||||||||||||||
Interest expense, net | 204 | 124 | 54 | 848 | 1,230 | |||||||||||||||
Income tax benefit | — | — | — | (261 | ) | (261 | ) | |||||||||||||
EBITDA | $ | (1,909 | ) | $ | (20,975 | ) | $ | (1,823 | ) | $ | (3,005 | ) | $ | (27,712 | ) | |||||
Adjustments, net | 5,020 | 22,303 | 2,644 | 814 | 30,781 | |||||||||||||||
Adjusted EBITDA | $ | 3,111 | $ | 1,328 | $ | 821 | $ | (2,191 | ) | $ | 3,069 | |||||||||
Adjusted EBITDA margin % | 14.3 | % | 12.3 | % | 17.3 | % | NA | 8.2 | % |
Three months ended December 31, 2018 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 30,424 | $ | 13,598 | $ | 5,179 | $ | — | $ | 49,201 | ||||||||||
Direct operating expenses | 24,153 | 10,964 | 3,330 | — | 38,447 | |||||||||||||||
General and administrative expenses | 1,096 | 1,024 | 302 | 4,905 | 7,327 | |||||||||||||||
Depreciation and amortization | 4,916 | 2,583 | 2,192 | 12 | 9,703 | |||||||||||||||
Operating loss | 259 | (973 | ) | (899 | ) | (4,917 | ) | (6,530 | ) | |||||||||||
Operating margin % | 0.9 | % | (7.2 | )% | (17.4 | )% | NA | (13.3 | )% | |||||||||||
Loss before income taxes | 252 | (1,063 | ) | (930 | ) | (6,924 | ) | (8,665 | ) | |||||||||||
Net loss | 252 | (1,055 | ) | (924 | ) | (7,076 | ) | (8,803 | ) | |||||||||||
Depreciation and amortization | 4,916 | 2,583 | 2,192 | 12 | 9,703 | |||||||||||||||
Interest expense, net | 100 | 90 | 31 | 2,057 | 2,278 | |||||||||||||||
Income tax (benefit) expense | — | (8 | ) | (6 | ) | 152 | 138 | |||||||||||||
EBITDA | $ | 5,268 | $ | 1,610 | $ | 1,293 | $ | (4,855 | ) | $ | 3,316 | |||||||||
Adjustments, net | 112 | (8 | ) | 308 | 2,369 | 2,781 | ||||||||||||||
Adjusted EBITDA | $ | 5,380 | $ | 1,602 | $ | 1,601 | $ | (2,486 | ) | $ | 6,097 | |||||||||
Adjusted EBITDA margin % | 17.7 | % | 11.8 | % | 30.9 | % | NA | 12.4 | % |
Year Ended December 31, 2019 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 103,552 | $ | 44,001 | $ | 20,685 | $ | — | $ | 168,238 | ||||||||||
Direct operating expenses | 81,529 | 35,836 | 13,654 | — | 131,019 | |||||||||||||||
General and administrative expenses | 5,021 | 2,880 | 1,104 | 11,859 | 20,864 | |||||||||||||||
Depreciation and amortization | 16,982 | 10,755 | 8,410 | 36 | 36,183 | |||||||||||||||
Operating loss | (5,022 | ) | (27,977 | ) | (5,208 | ) | (11,895 | ) | (50,102 | ) | ||||||||||
Operating margin % | (4.8 | )% | (63.6 | )% | (25.2 | )% | NA | (29.8 | )% | |||||||||||
Loss before income taxes | (5,479 | ) | (28,212 | ) | (5,428 | ) | (15,908 | ) | (55,027 | ) | ||||||||||
Net loss | (5,479 | ) | (28,212 | ) | (5,428 | ) | (15,818 | ) | (54,937 | ) | ||||||||||
Depreciation and amortization | 16,982 | 10,755 | 8,410 | 36 | 36,183 | |||||||||||||||
Interest expense, net | 692 | 469 | 220 | 3,846 | 5,227 | |||||||||||||||
Income tax benefit | — | — | — | (90 | ) | (90 | ) | |||||||||||||
EBITDA | $ | 12,195 | $ | (16,988 | ) | $ | 3,202 | $ | (12,026 | ) | $ | (13,617 | ) | |||||||
Adjustments, net | 4,464 | 21,713 | 2,242 | 2,636 | 31,055 | |||||||||||||||
Adjusted EBITDA | $ | 16,659 | $ | 4,725 | $ | 5,444 | $ | (9,390 | ) | $ | 17,438 | |||||||||
Adjusted EBITDA margin % | 16.1 | % | 10.7 | % | 26.3 | % | NA | 10.4 | % |
Year Ended December 31, 2018 | Rocky Mountain | Northeast | Southern | Corporate | Total | |||||||||||||||
Revenue | $ | 127,758 | $ | 43,564 | $ | 26,152 | $ | — | $ | 197,474 | ||||||||||
Direct operating expenses | 101,855 | 37,660 | 19,381 | — | 158,896 | |||||||||||||||
General and administrative expenses | 5,859 | 2,746 | 1,237 | 28,668 | 38,510 | |||||||||||||||
Depreciation and amortization | 22,826 | 12,148 | 11,397 | 63 | 46,434 | |||||||||||||||
Operating loss | (2,782 | ) | (9,059 | ) | (11,396 | ) | (29,063 | ) | (52,300 | ) | ||||||||||
Operating margin % | (2.2 | )% | (20.8 | )% | (43.6 | )% | NA | (26.5 | )% | |||||||||||
Loss before income taxes | (2,781 | ) | (9,370 | ) | (11,576 | ) | (35,329 | ) | (59,056 | ) | ||||||||||
Net loss | (2,781 | ) | (9,370 | ) | (11,576 | ) | (35,536 | ) | (59,263 | ) | ||||||||||
Depreciation and amortization | 22,826 | 12,148 | 11,397 | 63 | 46,434 | |||||||||||||||
Interest expense, net | 370 | 312 | 187 | 5,104 | 5,973 | |||||||||||||||
Income tax expense | — | — | — | 207 | 207 | |||||||||||||||
EBITDA | $ | 20,415 | $ | 3,090 | $ | 8 | $ | (30,162 | ) | $ | (6,649 | ) | ||||||||
Adjustments, net | (157 | ) | (1,857 | ) | 6,409 | 18,780 | 23,175 | |||||||||||||
Adjusted EBITDA | $ | 20,258 | $ | 1,233 | $ | 6,417 | $ | (11,382 | ) | $ | 16,526 | |||||||||
Adjusted EBITDA margin % | 15.9 | % | 2.8 | % | 24.5 | % | NA | 8.4 | % |
Three months ended December 31, 2019 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 37,273 | $ | — | $ | 37,273 | ||||||
Direct operating expenses | 29,648 | 135 | [A] | 29,783 | ||||||||
General and administrative expenses | 5,335 | (871 | ) | [B] | 4,464 | |||||||
Total costs and expenses | 73,873 | (30,783 | ) | [C] | 43,090 | |||||||
Operating loss | (36,600 | ) | 30,783 | [C] | (5,817 | ) | ||||||
Net loss | (37,524 | ) | 30,568 | [D] | (6,956 | ) | ||||||
Net loss | $ | (37,524 | ) | $ | (6,956 | ) | ||||||
Depreciation and amortization | 8,843 | 8,843 | ||||||||||
Interest expense, net | 1,230 | 1,230 | ||||||||||
Income tax benefit | (261 | ) | (48 | ) | ||||||||
EBITDA and Adjusted EBITDA | $ | (27,712 | ) | $ | 3,069 |
Description of 2019 Special Items: | |
[A] | Special items primarily includes the gain on sale of underutilized assets. |
[B] | Primarily attributable to stock-based compensation expense and transaction costs related to the exploration of strategic opportunities. |
[C] | Primarily includes the aforementioned adjustments along with goodwill impairment charges of $29.5 million and long-lived asset impairment charges of $0.5 million for assets classified as held-for-sale in the Northeast division. |
[D] | Primarily includes the aforementioned adjustments. Our effective tax rate for the three months ended December 31, 2019 was 0.7% and has been applied to the special items accordingly. |
Three months ended December 31, 2018 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 49,201 | $ | — | $ | 49,201 | ||||||
Direct operating expenses | 38,447 | (24 | ) | [E] | 38,423 | |||||||
General and administrative expenses | 7,327 | (2,553 | ) | [F] | 4,774 | |||||||
Total costs and expenses | 55,731 | (2,831 | ) | [G] | 52,900 | |||||||
Operating loss | (6,530 | ) | 2,831 | [G] | (3,699 | ) | ||||||
Net loss | (8,803 | ) | 2,825 | [H] | (5,978 | ) | ||||||
Net loss | $ | (8,803 | ) | $ | (5,978 | ) | ||||||
Depreciation and amortization | 9,703 | 9,703 | ||||||||||
Interest expense, net | 2,278 | 2,278 | ||||||||||
Income tax expense | 138 | 94 | ||||||||||
EBITDA and Adjusted EBITDA | $ | 3,316 | $ | 6,097 |
Description of 2018 Special Items: | |
[E] | Special items primarily includes the loss on sale of underutilized assets. |
[F] | Primarily attributable to $0.8 million in transaction costs related to our acquisition of Clearwater Solutions on October 5, 2018, $1.3 million in severance and stock-based compensation costs for the departure of our former CFO, non-routine litigation expenses and non-routine professional fees. |
[G] | Primarily includes the aforementioned adjustments along with long-lived asset impairment charges of $0.3 million for assets classified as held-for-sale in the Southern division. |
[H] | Primarily includes the aforementioned adjustments along with $0.1 million of capital reorganization costs incurred after the chapter 11 filing recorded to “Reorganization items, net,” offset by a gain of $0.1 million associated with the change in fair value of the derivative warrant liability. Additionally, our effective tax rate for the three months ended December 31, 2018 was (1.6)% and has been applied to the special items accordingly. |
Year Ended December 31, 2019 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 168,238 | $ | — | $ | 168,238 | ||||||
Direct operating expenses | 131,019 | 1,963 | [A] | 132,982 | ||||||||
General and administrative expenses | 20,864 | (2,578 | ) | [B] | 18,286 | |||||||
Total costs and expenses | 218,340 | (30,889 | ) | [C] | 187,451 | |||||||
Operating loss | (50,102 | ) | 30,889 | [C] | (19,213 | ) | ||||||
Net loss | (54,937 | ) | 31,004 | [D] | (23,933 | ) | ||||||
Net loss | $ | (54,937 | ) | $ | (23,933 | ) | ||||||
Depreciation and amortization | 36,183 | 36,183 | ||||||||||
Interest expense, net | 5,227 | 5,227 | ||||||||||
Income tax benefit | (90 | ) | (39 | ) | ||||||||
EBITDA and Adjusted EBITDA | $ | (13,617 | ) | $ | 17,438 |
Description of 2019 Special Items: | |
[A] | Special items primarily includes the gain on sale of underutilized assets. |
[B] | Primarily attributable to stock-based compensation expense and transaction costs related to the exploration of strategic opportunities. |
[C] | Primarily includes the aforementioned adjustments along with goodwill impairment charges of $29.5 million and long-lived asset impairment charges of $0.8 million for assets classified as held-for-sale in the Northeast and Rocky Mountain divisions. |
[D] | Primarily includes the aforementioned adjustments along with $0.2 million of capital reorganization costs incurred after the chapter 11 filing recorded to “Reorganization items, net,” offset by a gain of $34 thousand associated with the change in fair value of the derivative warrant liability. Additionally, our effective tax rate for the year ended December 31, 2019 was 0.2% and has been applied to the special items accordingly. |
Year Ended December 31, 2018 | ||||||||||||
As Reported | Special Items | As Adjusted | ||||||||||
Revenue | $ | 197,474 | $ | — | $ | 197,474 | ||||||
Direct operating expenses | 158,896 | 694 | [E] | 159,590 | ||||||||
General and administrative expenses | 38,510 | (16,774 | ) | [F] | 21,736 | |||||||
Total costs and expenses | 249,774 | (22,014 | ) | [G] | 227,760 | |||||||
Operating loss | (52,300 | ) | 22,014 | [G] | (30,286 | ) | ||||||
Net loss | (59,263 | ) | 23,256 | [H] | (36,007 | ) | ||||||
Net loss | $ | (59,263 | ) | $ | (36,007 | ) | ||||||
Depreciation and amortization | 46,434 | 46,434 | ||||||||||
Interest expense, net | 5,973 | 5,973 | ||||||||||
Income tax expense | 207 | 126 | ||||||||||
EBITDA and Adjusted EBITDA | $ | (6,649 | ) | $ | 16,526 |
Description of 2018 Special Items: | |
[E] | Special items primarily includes the gain on the sale of underutilized assets. |
[F] | Primarily attributable to $15.3 million in severance and stock-based compensation expense related to the departure of former CEO and CFO, $1.3 million in transaction costs related to the acquisition of Clearwater Solutions, non-routine litigation expenses and non-routine professional fees. |
[G] | Primarily includes the aforementioned adjustments along with long-lived asset impairment charges of $4.8 million for assets classified as held-for-sale in the Southern, Northeast and Corporate divisions, as well as exit costs of $1.1 million for management’s decision to exit the Eagle Ford shale area as of March 1, 2018. |
[H] | Primarily includes the aforementioned adjustments along with $1.7 million of capital reorganization costs incurred after the chapter 11 filing recorded to “Reorganization items, net,” offset by a gain of $0.4 million associated with the change in fair value of the derivative warrant liability. Additionally, our effective tax rate for the year ended December 31, 2018 was (0.4)% and has been applied to the special items accordingly. |
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