HOUSTON, March 10, 2021 /PRNewswire/ -- U.S. Well
Services, Inc. (the "Company", "U.S. Well Services" or "we")
(NASDAQ: USWS) today reported financial and operational results for
the full-year and fourth quarter 2020.
Full-Year and Fourth Quarter 2020 Highlights
- Executed agreements with key customers to provide electric frac
services on a contracted basis with three Clean Fleet® all-electric
hydraulic fracturing fleets
- Increased active fleet count to 5.7 fleets for the fourth
quarter of 2020 and experienced higher fleet utilization as demand
for frac services strengthened
- Averaged 5.4 fully-utilized fleets for the full-year 2020, as
compared to 8.8 fleets for the full-year 2019
- Total revenue of $244.0 million
in 2020 vs. $514.8 million in
2019
- Net loss attributable to the Company of $235.7 million for the full-year 2020, as
compared to $93.9 million for 2019.
Excluding a $147.5 million non-cash
impairment charge related to the carrying value of long-lived
assets, net loss attributable to the Company was $88.1 million for 2020.
- Adjusted EBITDA(1) for full-year 2020 was
$31.1 million, or $5.8 million of Adjusted EBITDA per
fully-utilized fleet. Excluding $12
million of non-cash charges related to doubtful collections
of Accounts Receivable, Adjusted EBITDA was $43.1 million, which equates to $8.0 million per fully-utilized
fleet(2). This compares to $103.2
million of Adjusted EBITDA and $11.7
million of Adjusted EBITDA per fully-utilized fleet for the
full-year 2019. Following a change in accounting estimate made
during the first quarter of 2020, the Company began expensing fluid
ends. Adjusted EBITDA as reported was $118.0
million for the full-year 2019, which reflects the Company's
previous policy of capitalizing fluid end costs.
- Averaged 5.3 fully-utilized fleets for the fourth quarter of
2020, as compared to 4.2 for the third quarter of 2020
- Total revenue of $48.1 million
for the fourth quarter of 2020, compared to $44.0 million for the third quarter of 2020
- Net loss attributable to the Company of $29.2 million for the fourth quarter of 2020 vs.
$15.9 million for the third quarter
of 2020
- Adjusted EBITDA was $1.8 million
for the fourth quarter of 2020. Excluding a non-cash charge related
to doubtful collections of Accounts Receivable, Adjusted
EBITDA(1) was $4.8 million
for the fourth quarter 2020, or $3.6
million of Annualized Adjusted EBITDA per fully-utilized
fleet, as compared to $8.1 million of
Adjusted EBITDA, or $7.7 million of
Annualized Adjusted EBITDA per fully-utilized fleet for the third
quarter 2020
- Total liquidity, consisting of cash and availability under the
Company's asset-backed revolving credit facility, was $14.0 million as of December 31, 2020
(1)
|
Each of Adjusted
EBITDA and Adjusted EBITDA margin is a Non-GAAP financial measure.
Please read "Non-GAAP Financial Measures."
|
(2)
|
Adjusted EBITDA per
fully-utilized fleet equivalent is defined as Adjusted EBITDA
divided by the product of average active fleets during the quarter
and the utilization rate for active fleets during the
quarter.
|
"I am proud of what the U.S. Well Services team accomplished in
2020 despite facing severe, unprecedented market challenges,"
commented Joel Broussard, the
Company's President and CEO. "The Company's proactive
response to the COVID-19 pandemic served to preserve liquidity and
maintain positive Adjusted EBITDA throughout the year. Our
team's unwavering commitment to efficiency, innovation, safety and
execution enabled us to deliver results for our customers amidst
market turbulence, and positioned our Company for success as the
completions services market recovers in 2021.
"We continue to see a recovery in demand for hydraulic
fracturing services, and in particular for next-generation electric
fracturing fleets. As a pioneer and market leader in the
electric fracturing market, U.S. Well Services is working
diligently with its customers to advance the industry and usher in
a new era of cleaner, safer and more efficient completions."
Outlook
Throughout the fourth quarter, a recovery in economic activity
and crude oil prices has driven an increase in demand for
completions services. Although activity levels have recovered
significantly relative to the low levels witnessed during the first
half of 2020, pricing for hydraulic fracturing services remains
depressed. However, U.S. Well Services expects pricing to
begin to recover during in the second half of 2021, driven by a
combination of attrition of the U.S. fracturing fleet and the
continued recovery in demand for crude oil.
We believe our industry is rapidly approaching an inflection
point, as E&P customers are increasingly seeking not only the
most efficient, but also the most environmentally-friendly
hydraulic fracturing solutions. We believe this secular trend
uniquely positions U.S. Well Services to benefit from the ongoing
market recovery. We possess not only a portfolio of
next-generation electric frac fleets that offer industry leading
emissions reduction capabilities, but also a demonstrated track
record for successfully operating electric fleets and developing
new intellectual property.
We continue to experience strong demand for our electric
fracturing services, and believe that commercial opportunities
exist that would support the expansion of our electric fleet during
2021.
Full-Year 2020 Financial Summary
For the year ended December 31,
2020, total revenue decreased by 53% to $244.0 million, compared to $514.8 million in 2019, driven by a sharp
reduction in market activity combined with weakened pricing as a
result of the COVID-19 pandemic.
Costs of services, excluding depreciation and amortization,
decreased 51% to $187.8 million from
$384.0 million in 2019. The
reduction in our cost of services is primarily attributable to
reduced activity levels and the implementation of cost-cutting
initiatives implemented in response to the COVID-19 pandemic.
Selling, general and administrative expense ("SG&A")
increased to $43.6 million from
$31.9 million in 2019.
Excluding stock-based compensation of $8.1
million and non-cash charges of $12.0
million for doubtful collections of Accounts Receivable,
SG&A totaled $23.5 million,
compared to $26.2 million in 2019.
See table below entitled "Consolidated Statements of Operations"
for the composition of SG&A.
Net loss attributable to the Company was $235.7 million for the full-year 2020 as compared
to $93.9 million for 2019.
Excluding a $147.5 million non-cash
impairment charge related to the carrying value of long-lived
assets, net loss attributable to the Company was $88.1 million for the full-year 2020.
Adjusted EBITDA for 2020 was $31.1
million. Excluding non-cash charges for doubtful
collections of Accounts Receivable, Adjusted EBITDA was
$43.1 million for 2020, or
$8.0 million per fully-utilized
fleet. For the full-year 2019, the Company reported Adjusted
EBITDA of $118.0 million.
Following a change in accounting estimate made during the first
quarter of 2020, the Company began expensing fluid ends.
Adjusted EBITDA after deducting capitalized fluid end costs in 2019
was $103.2 million, or $11.7 million per fully-utilized fleet.
Fourth Quarter 2020 Financial Summary
Revenue for the fourth quarter of 2020 increased 9% to
$48.1 million versus $44.0 million in the third quarter of 2020,
driven by an increase in activity levels as demand for frac
services strengthened. During the fourth quarter our active
fleet count increased to 5.7 fleets from 5.0 active fleets in the
third quarter. Utilization of the Company's active fleets
averaged 93% during the fourth quarter, resulting in a
fully-utilized equivalent of 5.3 fleets. This compares to 83%
utilization and a fully-utilized equivalent of 4.2 fleets for the
third quarter of 2020.
Costs of services, excluding depreciation and amortization, for
the fourth quarter of 2020 increased to $42.5 million from $31.2
million, driven primarily by labor, repair and maintenance
expenses related to readying fleets for redeployment in the first
quarter of 2021.
Selling, general and administrative expense ("SG&A")
increased to $13.3 million from
$6.1 million in the third quarter of
2020. Excluding stock-based compensation of $4.7 million and a non-cash charge of
$3.0 million related for doubtful
collections of Accounts Receivables, SG&A was $5.6 million, compared to $5.0 million in the third quarter of 2020. This
sequential increase was primarily attributable to an increase in
professional fees. See table below entitled "Consolidated
Statements of Operations" for the composition of SG&A.
Net loss attributable to the Company increased sequentially to
$29.2 million from $15.9 million in the third quarter of 2020.
Adjusted EBITDA, excluding a non-cash charge for doubtful
collections of Accounts Receivables, declined to $4.8 million, or $3.6
million of Annualized Adjusted EBITDA per fully-utilized
fleet, as compared to $8.1 million of
Adjusted EBITDA and $7.7 million of
Annualized Adjusted EBITDA per fully-utilized fleet in the third
quarter of 2020.
Operational Highlights
U.S. Well Services exited the year with six active frac fleets,
of which four were new-generation electric fleets. Two of our
fleets were working in the Appalachian Basin, two fleets were in
the Eagle Ford and two fleets were in the Permian Basin. The
Company expects to maintain between nine and ten active fleets
during the first quarter of 2021.
U.S. Well Services completed 3,168 frac stages, or approximately
598 stages per fully-utilized fleet in the fourth quarter of 2020,
compared to 2,388 frac stages during the third quarter of 2020, or
568 stages per fully-utilized fleet. Pumping hours per day
remained flat with third quarter 2020 levels. The Company
pumped for 5,121 hours over 416 frac days in the fourth quarter of
2020, as compared to 4,139 hours over 333 frac days in the third
quarter of 2020.
U.S. Well Services continues to be one of the market leaders in
electric fracturing, with 18,752 electric fracturing stages
completed since the deployment of our first Clean Fleet® in
2014. The Company continued to expand its intellectual
property portfolio throughout 2020, ending the year with 38 granted
patents and 189 pending patents.
Balance Sheet and Capital Spending
As of December 31, 2020, total
liquidity was $14.0 million,
consisting of $5.3 million of cash on
the Company's balance sheet and $8.7
million of availability under the Company's asset-backed
revolving credit facility, and net debt was $293.2 million.
Maintenance capital expenditures, on an accrual basis were
$4.1 million for the fourth quarter
of 2020.
Conference Call Information
The Company will host a conference call at 10:00 am Central / 11:00
am Eastern Time on Thursday, March 11, 2021 to discuss
financial and operating results for the full-year and fourth
quarter of 2020 and recent developments. This call will also be
webcast on U.S. Well Services' website at
https://ir.uswellservices.com/news-events/ir-calendar. To
access the conference call, please dial 201-389-0872 and ask for
the U.S. Well Services call at least 10 minutes prior to the start
time or listen to the call live over the Internet by logging on to
the Company's website from the link above. A telephonic
replay of the conference call will be available through
March 18 and may be accessed by
dialing 201-612-7415 and using the passcode 13717441. Also,
an archive of the webcast will be available shortly after the call
at https://ir.uswellservices.com/news-events/ir-calendar.
About U.S. Well Services, Inc.
U.S. Well Services, Inc. is a leading provider of hydraulic
fracturing services and a market leader in electric fracture
stimulation. The Company's patented electric frac technology
provides one of the first fully electric, mobile well stimulation
systems powered by locally supplied natural gas including field gas
sourced directly from the wellhead. The Company's electric frac
technology dramatically decreases emissions and sound pollution
while generating exceptional operational efficiencies including
significant customer fuel cost savings versus conventional diesel
fleets. For more information visit: www.uswellservices.com.
The information on our website is not part of this release.
Forward-Looking Statements
The information above includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical facts,
included herein concerning, among other things, availability under
the Company's credit facilities, benefits obtained from the
Company's strategic financing transactions, the Company's financial
position and liquidity, business strategy and objectives for future
operations, results of discussions with potential customers,
potential new contract opportunities, planned deployment and
operation of fleets, pricing recovery, and the Company's ability to
benefit from the market recovery are forward-looking statements.
These forward-looking statements may be identified by their use of
terms and phrases such as "may," "expect," "guidance," "estimate,"
"project," "plan," "believe," "intend," "achievable," "anticipate,"
"will," "continue," "potential," "should," "could," "target" and
similar terms and phrases. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve certain assumptions, risks and
uncertainties. These forward-looking statements represent the
Company's current expectations or beliefs concerning future events,
and it is possible that the results described in this release will
not be achieved. These forward-looking statements are subject to
certain risks, uncertainties and assumptions, including those
identified in this release or disclosed from time to time in the
Company's filings with the Securities and Exchange Commission (the
"SEC"). Factors that could cause actual results to differ from the
Company's expectations include changes in market conditions,
changes in commodity prices, changes in supply and demand for oil
and gas, changes in demand for our services, availability of
financing and capital, the Company's liquidity, the Company's
compliance with covenants under its credit agreements, actions by
customers and potential customers, geopolitical events, public
health crises, such as a pandemic, including the recent COVID-19
pandemic, availability of equipment and personnel and other factors
described in the Company's public disclosures and filings with the
SEC, including those described under "Risk Factors" in our annual
report on Form 10-K for the fiscal year ended December 31, 2020 and in our quarterly reports on
Form 10-Q. As a result of these factors, actual results may differ
materially from those indicated or implied by forward-looking
statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Contacts:
|
U.S. Well
Services
|
|
Josh Shapiro, VP,
Finance and Investor Relations
|
|
(832)
562-3730
|
|
IR@uswellservices.com
|
|
|
|
Dennard Lascar
Investor Relations
|
|
Ken Dennard / Lisa
Elliott
|
|
(713)
529-6600
|
|
USWS@dennardlascar.com
|
- Tables to Follow -
U.S. WELL
SERVICES, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited and
amounts in thousands except for active fleets and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years Ended
December 31,
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Statement of
Operations Data:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
48,093
|
|
$
44,042
|
|
$
92,682
|
|
$
244,007
|
|
$
514,757
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of services
(excluding depreciation and amortization)
|
42,482
|
|
31,157
|
|
76,115
|
|
187,803
|
|
383,957
|
Depreciation and
amortization
|
14,594
|
|
16,393
|
|
36,260
|
|
80,353
|
|
154,149
|
Selling, general and
administrative expenses (3)
|
13,256
|
|
6,098
|
|
7,382
|
|
43,632
|
|
31,856
|
Impairment loss on
long-lived assets
|
-
|
|
-
|
|
-
|
|
147,543
|
|
-
|
Loss on disposal of
assets
|
1,260
|
|
755
|
|
4,182
|
|
7,112
|
|
20,065
|
Loss from
operations
|
(23,499)
|
|
(10,361)
|
|
(31,257)
|
|
(222,436)
|
|
(75,270)
|
Interest expense,
net
|
(5,852)
|
|
(5,744)
|
|
(8,715)
|
|
(25,209)
|
|
(30,099)
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
-
|
|
(12,558)
|
Other income
(expense)
|
27
|
|
30
|
|
(7)
|
|
108
|
|
1,768
|
Loss before income
taxes
|
(29,324)
|
|
(16,075)
|
|
(39,979)
|
|
(247,537)
|
|
(116,159)
|
Income tax
benefit
|
-
|
|
(87)
|
|
(546)
|
|
(824)
|
|
(77)
|
Net loss
|
(29,324)
|
|
(15,988)
|
|
(39,433)
|
|
(246,713)
|
|
(116,082)
|
Net loss attributable
to noncontrolling interest
|
(100)
|
|
(51)
|
|
(6,240)
|
|
(11,048)
|
|
(22,169)
|
Net loss attributable
to U.S. Well Services, Inc.
|
$
(29,224)
|
|
$
(15,937)
|
|
$
(33,193)
|
|
$
(235,665)
|
|
$
(93,913)
|
Dividends accrued on
Series A preferred stock
|
(1,764)
|
|
(1,854)
|
|
(1,720)
|
|
(7,214)
|
|
(4,050)
|
Dividends accrued on
Series B preferred stock
|
(702)
|
|
(681)
|
|
-
|
|
(2,049)
|
|
-
|
Deemed and imputed
dividends on Series A preferred stock
|
(446)
|
|
(467)
|
|
(5,240)
|
|
(11,666)
|
|
(11,206)
|
Deemed dividends on
Series B preferred stock
|
(410)
|
|
-
|
|
-
|
|
(564)
|
|
-
|
Net loss attributable
to U.S. Well Services, Inc. common stockholders
|
$
(32,546)
|
|
$
(18,939)
|
|
$
(40,153)
|
|
$
(257,158)
|
|
$
(109,169)
|
|
|
|
|
|
|
|
|
|
|
Net lost attributable
to U.S. Well Services, Inc. stockholders per common
share:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
(0.46)
|
|
(0.28)
|
|
(0.74)
|
|
(3.88)
|
|
(2.11)
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
68,801
|
|
66,667
|
|
53,279
|
|
64,791
|
|
50,244
|
|
|
|
|
|
|
|
|
|
|
Other Financial
and Operational Data
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
(1)
|
5,649
|
|
3,822
|
|
22,350
|
|
36,766
|
|
279,630
|
Adjusted EBITDA
(2)
|
1,807
|
|
8,123
|
|
12,138
|
|
31,146
|
|
117,996
|
Average Active
Fleets
|
5.7
|
|
5.0
|
|
8.0
|
|
6.4
|
|
9.9
|
|
(1) Capital
expenditures presented above are shown on an accrual basis and net
of insurance receivable accrued for the purchase of replacement
equipment.
|
(2) Adjusted EBITDA
is a Non-GAAP Financial Measure. See Non-GAAP Financial Measures
table entitled "Reconciliation of Net Income (GAAP) to EBITDA and
Adjusted EBITDA (Non-GAAP)" below.
|
(3) Selling, general
and administrative expenses consist of the following:
|
|
|
Three Months
Ended
|
|
Years Ended
December 31,
|
|
December 31,
2020
|
|
September 30,
2020
|
|
2020
|
|
2019
|
Provision for losses
on accounts receivable
|
$
3,000
|
|
$
-
|
|
$
12,031
|
|
$
434
|
Share-based
compensation expense
|
4,703
|
|
1,134
|
|
8,116
|
|
5,242
|
Payroll costs and
other selling, general and administrative expenses
|
5,553
|
|
4,964
|
|
23,485
|
|
26,180
|
Selling, general and
administrative expenses
|
13,256
|
|
6,098
|
|
$
43,632
|
|
$
31,856
|
U.S. WELL
SERVICES, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited and
amount in thousands, except share and per share
amounts)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
3,693
|
|
$
33,794
|
Restricted
cash
|
1,569
|
|
7,610
|
Accounts receivable
(net of allowance for doubtful accounts of $12,000 and $22 in 2020
and 2019, respectively)
|
44,393
|
|
79,542
|
Inventory,
net
|
7,965
|
|
9,052
|
Prepaids and other
current assets
|
10,707
|
|
13,332
|
Total current
assets
|
68,327
|
|
143,330
|
Property and
equipment, net
|
235,332
|
|
441,610
|
Intangible assets,
net
|
13,466
|
|
21,826
|
Goodwill
|
4,971
|
|
4,971
|
Deferred financing
costs, net
|
1,127
|
|
1,045
|
TOTAL
ASSETS
|
$
323,223
|
|
$
612,782
|
LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
36,362
|
|
$
70,170
|
Accrued expenses and
other current liabilities
|
14,781
|
|
40,481
|
Notes
payable
|
998
|
|
8,068
|
Current portion of
long-term equipment financing
|
3,519
|
|
5,564
|
Current portion of
long-term capital lease obligation
|
54
|
|
10,474
|
Current portion of
long-term debt
|
10,000
|
|
6,250
|
Total current
liabilities
|
65,714
|
|
141,007
|
Long-term equipment
financing
|
9,347
|
|
10,501
|
Long-term
debt
|
274,555
|
|
274,391
|
Other long-term
liabilities
|
3,539
|
|
215
|
TOTAL
LIABILITIES
|
353,155
|
|
426,114
|
Commitments and
contingencies (NOTE 16)
|
|
|
|
MEZZANINE
EQUITY
|
|
|
|
Series A Redeemable
Convertible Preferred Stock, par value $0.0001 per share; 55,000
shares authorized; 50,000 shares and 55,000 shares issued and
outstanding as of December 31, 2020 and 2019, respectively;
aggregate liquidation preference of $60,418 and $59,050 as of
December 31, 2020 and 2019, respectively
|
52,776
|
|
38,928
|
Series B Redeemable
Convertible Preferred Stock, par value $0.0001 per share; 22,050
shares and 0 shares authorized, issued and outstanding as of
December 31, 2020 and 2019, respectively; aggregate liquidation
preference of $24,100 and $0 as of December 31, 2020 and 2019,
respectively
|
22,686
|
|
-
|
STOCKHOLDERS' EQUITY
(DEFICIT)
|
|
|
|
Class A Common Stock,
par value of $0.0001 per share; 400,000,000 shares authorized;
72,515,342 shares and 62,857,624 shares issued and outstanding as
of December 31, 2020 and 2019,
respectively
|
7
|
|
5
|
Class B Common Stock,
par value of $0.0001 per share; 20,000,000 shares authorized;
2,302,936 shares and 5,500,692 shares issued and outstanding as of
December 31, 2020 and 2019, respectively
|
-
|
|
1
|
Additional paid in
capital
|
241,465
|
|
248,302
|
Accumulated
deficit
|
(346,866)
|
|
(111,201)
|
Total stockholders'
equity (deficit) attributable to U.S. Well Services,
Inc.
|
(105,394)
|
|
137,107
|
Noncontrolling
interest
|
-
|
|
10,633
|
Total Stockholders'
Equity (Deficit)
|
(105,394)
|
|
147,740
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)
|
$
323,223
|
|
$
612,782
|
U.S. WELL
SERVICES, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited and in
thousands)
|
|
|
|
|
|
Years Ended
December 31,
|
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
(246,713)
|
|
$
(116,082)
|
Adjustments to
reconcile net loss to cash provided by operating
activities
|
|
|
|
Depreciation and
amortization
|
80,353
|
|
154,149
|
Impairment of
long-lived assets
|
147,543
|
|
-
|
Loss on disposal of
assets
|
7,112
|
|
20,065
|
Loss on
extinguishment of debt
|
-
|
|
12,558
|
Share-based
compensation expense
|
10,056
|
|
7,755
|
Other noncash
items
|
17,547
|
|
3,784
|
Changes in working
capital
|
(7,282)
|
|
(7,385)
|
Net cash provided
by operating activities
|
8,616
|
|
74,844
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchase of property
and equipment
|
(55,943)
|
|
(209,101)
|
Proceeds from sale of
property and equipment and insurance proceeds from damaged property
and equipment
|
20,944
|
|
807
|
Net cash used in
investing activities
|
(34,999)
|
|
(208,294)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
revolving credit facility
|
68,957
|
|
49,960
|
Repayments of
revolving credit facility
|
(85,497)
|
|
(65,844)
|
Proceeds from
issuance of long-term debt
|
31,996
|
|
285,000
|
Repayments of
long-term debt
|
(3,750)
|
|
(75,000)
|
Payment of fees
related to debt extinguishment
|
-
|
|
(6,560)
|
Repayments of amounts
under equipment financing
|
(3,199)
|
|
(70,619)
|
Principal payments
under finance lease obligation
|
(10,474)
|
|
(16,699)
|
Proceeds from
issuance of preferred stock and warrants, net
|
19,596
|
|
54,524
|
Proceeds from
issuance of common stock, net
|
400
|
|
-
|
Other
|
(27,788)
|
|
(9,944)
|
Net cash provided
by financing activities
|
(9,759)
|
|
144,818
|
Net increase in cash
and cash equivalents and restricted cash
|
(36,142)
|
|
11,368
|
Cash and cash
equivalents and restricted cash, beginning of period
|
41,404
|
|
30,036
|
Cash and cash
equivalents and restricted cash, end of period
|
$
5,262
|
|
$
41,404
|
Non-GAAP Financial Measures
The Company reports its financial results in accordance with
GAAP. The Company believes, however, that certain non-GAAP
performance measures allow external users of its consolidated
financial statements, such as industry analysts, investors, lenders
and rating agencies, to more effectively evaluate its operating
performance and compare the results of its operations from period
to period and against the Company's peers without regard to the
Company's financing methods or capital structure. Additionally, the
Company believes the use of certain non-GAAP measures highlights
trends in the Company's business that may not otherwise be apparent
when relying solely on GAAP measures.
Reconciliation of Net Income to Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measures and
should not be considered as a substitute for net income (loss),
operating income (loss) or any other performance measure derived in
accordance with GAAP or as an alternative to net cash provided by
operating activities as a measure of the Company's profitability or
liquidity. The Company's management believes EBITDA and Adjusted
EBITDA are useful because they allow external users of its
consolidated financial statements, such as industry analysts,
investors, lenders and rating agencies, to more effectively
evaluate the Company's operating performance, compare the results
of its operations from period to period and against the Company's
peers without regard to the Company's financing methods or capital
structure and because it highlights trends in the Company's
business that may not otherwise be apparent when relying solely on
GAAP measures. The Company believes EBITDA and Adjusted EBITDA are
important supplemental measures of its performance that are
frequently used by others in evaluating companies in its industry.
Because EBITDA and Adjusted EBITDA exclude some, but not all, items
that affect net income (loss) and may vary among companies, the
EBITDA and Adjusted EBITDA that the Company presents may not be
comparable to similarly titled measures of other companies.
The Company defines EBITDA as earnings before interest, income
taxes, depreciation and amortization. The Company defines Adjusted
EBITDA as EBITDA excluding the following: loss on disposal of
assets; share-based compensation; impairments; market-driven costs
associated with the COVID-19 pandemic, and other items that the
Company believes to be non-recurring in nature. The Company
defines Adjusted EBITDA margin as Adjusted EBITDA as a percentage
of Revenue.
U.S. WELL
SERVICES, INC.
|
RECONCILIATION OF
NET INCOME (GAAP) TO EBITDA (NON-GAAP) AND ADJUSTED EBITDA
(NON-GAAP)
|
(unaudited,
amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years Ended
December 31,
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
2020
|
|
2019
|
Net loss
|
$
(29,324)
|
|
$
(15,988)
|
|
$
(39,433)
|
|
$
(246,713)
|
|
$
(116,082)
|
Interest expense,
net
|
5,852
|
|
5,744
|
|
8,715
|
|
25,209
|
|
30,099
|
Income tax
benefit
|
-
|
|
(87)
|
|
(546)
|
|
(824)
|
|
(77)
|
Depreciation and
amortization
|
14,594
|
|
16,393
|
|
36,260
|
|
80,353
|
|
154,149
|
EBITDA
|
(8,878)
|
|
6,062
|
|
4,996
|
|
(141,975)
|
|
68,089
|
Loss on disposal of
assets (a)
|
1,260
|
|
755
|
|
4,182
|
|
7,112
|
|
20,065
|
Share based
compensation (b)
|
5,537
|
|
1,037
|
|
2,083
|
|
10,056
|
|
7,755
|
Impairment loss
(c)
|
-
|
|
-
|
|
-
|
|
147,543
|
|
-
|
Fleet start-up,
relocation, and reactivation costs (d)
|
2,460
|
|
-
|
|
877
|
|
3,033
|
|
9,085
|
Restructuring and
transaction related costs (e)
|
-
|
|
-
|
|
-
|
|
-
|
|
1,738
|
Severance, business
restructuring, and market-driven costs (f)
|
1,428
|
|
269
|
|
-
|
|
5,377
|
|
-
|
Fleet 6 fire
(g)
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,294)
|
Loss on
extinguishment of debt (h)
|
-
|
|
-
|
|
-
|
|
-
|
|
12,558
|
Adjusted
EBITDA
|
$
1,807
|
|
$
8,123
|
|
$
12,138
|
|
$
31,146
|
|
$
117,996
|
|
(a) Represents net
losses on the disposal of property and equipment.
|
(b) Represents
non-cash share-based compensation.
|
(c) Represents
non-cash impairment charge on long-lived assets.
|
(d) Represents costs
related to the start-up, relocation and / or reactivation of
hydraulic fracturing fleets.
|
(e) Represents
third-party professional fees and other costs related to strategic
and capital market transactions.
|
(f) Represents
severance, restructuring cost related to reductions in force and
facility closures, and market driven-costs associated with the
COVID-19 pandemic.
|
(g) Represents
insurance reimbursement of costs related to a fleet fire previously
reported as an add-back.
|
(h) Represents
non-recurring costs related to debt extinguishment.
|
View original
content:http://www.prnewswire.com/news-releases/us-well-services-announces-full-year-and-fourth-quarter-2020-financial-and-operational-results-301244964.html
SOURCE U.S. Well Services, Inc.