HOUSTON, Aug. 11, 2021 /PRNewswire/ -- U.S. Well
Services, Inc. (the "Company", "U.S. Well Services" or "we")
(NASDAQ: USWS) today reported second quarter 2021 financial and
operational results.
Second Quarter 2021 Highlights
- Issued $125.5 million of
Convertible Senior Notes, raising $86.5
million of gross cash proceeds
- Entered into license agreement with ProFrac Manufacturing, LLC
("ProFrac"), providing ProFrac with a five-year option to purchase
up to 20 licenses to build electric fleets using Clean Fleet®
technology worth up to $165 million;
as of June 30, 2021, three licenses
were sold, generating $22.5 million
of income
- Announced plans to build four new all-electric Nyx Clean
Fleets® with delivery beginning in Q1 2022
- Averaged 7.9 fully-utilized fleets compared to 8.8
fully-utilized fleets during the first quarter of 2021
- Total revenue of $78.8 million
compared to $76.3 million in the
first quarter of 2021
- Net loss attributable to the Company of $17.7 million compared to net loss of
$20.6 million in the first quarter of
2021
- Adjusted EBITDA(1) of $36.9
million, or $14.4 million when
excluding income associated with licensing of Clean Fleet
technology®, compared to $11.5
million in the first quarter of 2021
- Reported annualized Adjusted EBITDA per fully-utilized fleet of
$18.7 million compared to
$5.2 million for the first quarter of
2021(2)
- Excluding income associated with licensing of Clean Fleet®
technology, annualized Adjusted EBITDA per fully-utilized fleet was
$7.3 million for the second quarter
of 2021(2)
- Maintenance capital expenditures were $4.8 million on an accrual basis
- Total liquidity, consisting of cash and availability under the
Company's asset-backed revolving credit facility, was $70.7 million as of June
30, 2021
(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.
|
"The second quarter of 2021 marked a turning point for U.S. Well
Services as we began our transition towards becoming a
fully-electric frac services company," commented Joel Broussard, the Company's President and
CEO. "I am proud of this organization's exceptional
performance as we made tremendous progress on multiple strategic
initiatives. During the quarter we finalized the design of
our new 6,000 HHP Nyx Clean Fleet® pump, resolved outstanding
litigation, began implementing a plan to reduce term loan
borrowings and raised funds to grow our electric fleet. The
fact that we were able to accomplish so much while maintaining the
highest levels of service quality and posting strong financial
results is a testament to the resolve, efficiency and capability of
the U.S. Well Services team.
"We believe U.S. Well Services is best positioned to satisfy the
growing demand for clean completions as our Clean
Fleet® technology offers reduced emissions, reduced fuel costs
and reduced impacts on communities in which oil and gas is
produced. The agreement we executed with ProFrac to license
the Clean Fleet® design and technology is a critical milestone
for the Company and is further evidence of the value of our
intellectual property."
Outlook
Industry activity levels continued to improve throughout the
second quarter, as E&P companies responded to rising commodity
prices by reactivating completion crews. Although we were
encouraged by the uptick in activity, pricing for diesel frac
services has yet to recover to pre-pandemic levels. The
combination of sustained, depressed pricing for legacy diesel
fleets combined with a tight labor market, inflationary headwinds
across the supply chain and the widening bifurcation in demand for
next-generation and conventional diesel fleets led U.S. Well
Services to announce its exit from the diesel frac services
business to focus solely on the premium, electric market
segment.
Demand for all-electric fracturing fleets remains strong, as
demonstrated by the industry utilization rate for electric fleets
relative to the broader U.S. fracturing fleet. As previously
announced, U.S. Well Services intends to build four new
all-electric Nyx Clean Fleets® to help address the industry's
need for next-generation fracturing solutions.
Second Quarter 2021 Financial Summary
Revenue for the second quarter of 2021 increased 3% to
$78.8 million versus $76.3 million in the first quarter of 2021.
The increase in revenue was driven primarily by higher sales of
sand and sand transportation services. U.S. Well Services
averaged 9.3 active fleets during the quarter, as compared to 10.0
for the first quarter of 2021. Utilization of the Company's
active fleets averaged 85% during the second quarter, resulting in
a fully-utilized equivalent of 7.9 fleets. This compares to
88% utilization and a fully-utilized equivalent of 8.8 fleets for
the first quarter of 2021.
Costs of services, excluding depreciation and amortization, for
the second quarter of 2021 decreased to $59.3 million from $62.6
million during the first quarter of 2021, driven by a
reduction in chemical costs and repair and maintenance
expenses. These cost reductions were partially offset by
higher fuel and trucking prices.
Selling, general and administrative expense ("SG&A")
declined to $7.2 million in the
second quarter of 2021 from $7.4
million in the first quarter of 2021. Excluding
stock-based compensation, SG&A in the second quarter of 2021
was $5.5 million compared to
$5.9 million in the first quarter of
2021. This sequential decrease was primarily attributable to a
decrease in professional fees.
Net loss attributable to the Company decreased sequentially to
$17.7 million in the second quarter
of 2021 from $20.6 million in the
first quarter of 2021. Adjusted EBITDA increased to
$36.9 million in the second quarter
of 2021 from $11.5 million in the
first quarter of 2021. Annualized Adjusted EBITDA per
fully-utilized fleet was $18.7
million, or $7.3 million
excluding income associated with licensing the Clean
Fleet® technology. Adjusted EBITDA margin was
47%.(1)
Operational Highlights
U.S. Well Services exited the second quarter with seven active
frac fleets, which includes all five of our Clean Fleets®.
Three fleets were working in the Appalachian Basin, one fleet was
in the Eagle Ford and three fleets were in the Permian Basin.
The Company expects to average five to six active fleets in the
third quarter as it continues to phase out diesel fleet
operations.
U.S. Well Services continues to be a market leader in electric
fracturing, with 23,089 electric fracturing stages completed since
the deployment of our first Clean Fleet® in 2014. The
Company continued to expand its intellectual property portfolio
during the second quarter, and currently has 47 patents, with 201
patents pending.
Balance Sheet and Capital Spending
As of June 30, 2021, total
liquidity was $70.7 million,
consisting of $58.1 million of cash
on the Company's balance sheet and $12.6
million of availability under the Company's asset-backed
revolving credit facility.
The outstanding principal balance on the Company's senior
secured term loan was reduced to $233.7
million at June 30, 2021 from
$245.0 million at March 31, 2021. As previously announced,
the Company expects to use proceeds from the sale of non-core
assets to reduce outstanding borrowings on its senior secured term
loan. As of July 31, 2021, the
outstanding principal balance on the Company's senior secured term
loan was further reduced to $208.5
million.
Maintenance capital expenditures, on an accrual basis, were
$4.8 million for the quarter.
Conference Call Information
The Company will host a conference call at 10:00 am Central / 11:00
am Eastern Time on Thursday, August 12, 2021 to discuss
financial and operating results for the second quarter of 2021 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
August 19, 2021 and may be accessed
by calling 201-612-7415 using passcode 13722260. A webcast
archive will also be available at the link above shortly after the
call and will be accessible for approximately 90 days.
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, industry activity
levels, availability under the Company's credit facilities,
benefits obtained from the Company's strategic financing
transactions, the Company's financial position and liquidity, the
Company's plan to repay indebtedness, business strategy and
objectives for future operations, results of discussions with
potential customers, potential new contract opportunities and
planned construction, deployment and operation of fleets, 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 and new and potentially more contagious variants of
COVID-19 such as the delta variant, 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 Amendment No. 1 to our
Annual Report on Form 10-K/A for the year ended December 31, 2020 filed on May 17, 2021 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.
- Tables to Follow -
U.S. WELL
SERVICES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited and
amounts in thousands except for active fleets and per share
amounts)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Statement of
Operations Data:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
78,799
|
|
$
39,837
|
|
$
76,258
|
|
$ 155,057
|
|
$
151,872
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of services
(excluding depreciation and
amortization)
|
59,252
|
|
29,011
|
|
62,631
|
|
121,883
|
|
114,165
|
Depreciation and
amortization
|
9,836
|
|
17,358
|
|
11,106
|
|
20,942
|
|
49,366
|
Selling, general and
administrative expenses
|
7,214
|
|
5,220
|
|
7,390
|
|
14,604
|
|
24,277
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
-
|
|
-
|
|
147,543
|
Litigation
settlement
|
35,000
|
|
-
|
|
-
|
|
35,000
|
|
-
|
Loss (gain) on
disposal of assets
|
(545)
|
|
853
|
|
2,436
|
|
1,891
|
|
5,097
|
Loss from
operations
|
(31,958)
|
|
(12,605)
|
|
(7,305)
|
|
(39,263)
|
|
(188,576)
|
Interest expense,
net
|
(7,333)
|
|
(5,665)
|
|
(6,183)
|
|
(13,516)
|
|
(13,621)
|
Change in fair value
of warrant liabilities
|
(136)
|
|
(1,364)
|
|
(7,151)
|
|
(7,287)
|
|
5,189
|
Patent license
sales
|
22,500
|
|
-
|
|
-
|
|
22,500
|
|
-
|
Loss on
extinguishment of debt
|
(839)
|
|
-
|
|
-
|
|
(839)
|
|
-
|
Other
income
|
23
|
|
45
|
|
29
|
|
52
|
|
51
|
Loss before income
taxes
|
(17,743)
|
|
(19,589)
|
|
(20,610)
|
|
(38,353)
|
|
(196,957)
|
Income tax expense
(benefit)
|
(27)
|
|
13
|
|
-
|
|
(27)
|
|
(737)
|
Net loss
|
(17,716)
|
|
(19,602)
|
|
(20,610)
|
|
(38,326)
|
|
(196,220)
|
Net loss attributable
to noncontrolling interest
|
-
|
|
(97)
|
|
(44)
|
|
(44)
|
|
(10,897)
|
Net loss attributable
to U.S. Well Services, Inc.
|
(17,716)
|
|
(19,505)
|
|
(20,566)
|
|
(38,282)
|
|
(185,323)
|
Dividends accrued on
Series A preferred stock
|
(1,998)
|
|
(1,845)
|
|
(1,813)
|
|
(3,811)
|
|
(3,596)
|
Dividends accrued on
Series B preferred stock
|
(811)
|
|
(666)
|
|
(711)
|
|
(1,522)
|
|
(666)
|
Deemed and imputed
dividends on Series A
preferred stock
|
(286)
|
|
(5,142)
|
|
(464)
|
|
(750)
|
|
(12,114)
|
Deemed dividends on
Series B preferred stock
|
(1,501)
|
|
-
|
|
(4,168)
|
|
(5,669)
|
|
-
|
Exchange of Series A
preferred stock for
convertible senior notes
|
8,936
|
|
-
|
|
-
|
|
8,936
|
|
-
|
Net loss attributable
to U.S. Well Services, Inc.
common stockholders
|
$ (13,376)
|
|
$ (27,158)
|
|
$
(27,722)
|
|
$ (41,098)
|
|
$
(201,699)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to U.S. Well Services, Inc. stockholders per common
share:
|
|
|
|
|
Basic and
diluted
|
$
(0.15)
|
|
$
(0.41)
|
|
$
(0.35)
|
|
$
(0.48)
|
|
$
(3.19)
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
88,593
|
|
65,011
|
|
78,977
|
|
83,810
|
|
61,815
|
|
|
|
|
|
|
|
|
|
|
Other Financial
and Operational Data:
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
(1)
|
$
6,877
|
|
$
3,993
|
|
$
11,779
|
|
$
18,656
|
|
$
27,295
|
Adjusted EBITDA
(2)
|
$
36,869
|
|
$
8,466
|
|
$
11,508
|
|
$
48,377
|
|
$
21,214
|
Average Active
Fleets
|
9.3
|
|
4.3
|
|
10.0
|
|
9.7
|
|
7.5
|
|
(1) Capital
expenditures presented above are shown on an accrual
basis.
|
(2) Adjusted EBITDA
is a Non-GAAP Financial Measure. See the tables entitled
"Reconciliation and Calculation of Non-GAAP Financial and
Operational Measures" below.
|
U.S. WELL
SERVICES, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited and
amounts in thousands except share and per share
amounts)
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
57,544
|
|
$
3,693
|
Restricted
cash
|
519
|
|
1,569
|
Accounts receivable
(net of allowance for doubtful accounts of $0 and $12,000
as of June 30, 2021 and December 31, 2020,
respectively)
|
54,890
|
|
44,393
|
Inventory,
net
|
7,531
|
|
7,965
|
Assets held for
sale
|
14,744
|
|
-
|
Prepaids and other
current assets
|
12,400
|
|
10,707
|
Total current
assets
|
147,628
|
|
68,327
|
Property and
equipment, net
|
213,301
|
|
235,332
|
Intangible assets,
net
|
12,983
|
|
13,466
|
Goodwill
|
4,971
|
|
4,971
|
Deferred financing
costs, net
|
747
|
|
1,127
|
TOTAL
ASSETS
|
$
379,630
|
|
$
323,223
|
LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
35,353
|
|
$
36,362
|
Accrued expenses and
other current liabilities
|
12,210
|
|
14,781
|
Notes
payable
|
6,440
|
|
998
|
Current portion of
long-term debt
|
12,000
|
|
10,000
|
Current portion of
equipment financing
|
3,611
|
|
3,519
|
Current portion of
capital lease obligations
|
325
|
|
54
|
Total current
liabilities
|
69,939
|
|
65,714
|
Warrant
liabilities
|
8,914
|
|
1,619
|
Long-term
debt
|
281,052
|
|
274,555
|
Convertible senior
notes
|
85,677
|
|
-
|
Long-term equipment
financing
|
7,517
|
|
9,347
|
Long-term capital
lease obligations
|
909
|
|
-
|
Other long-term
liabilities
|
4,006
|
|
3,539
|
Total
liabilities
|
458,014
|
|
354,774
|
Commitments and
contingencies
|
|
|
|
Mezzanine
equity:
|
|
|
|
Series A Redeemable
Convertible Preferred Stock, par value $0.0001 per share;
55,000
shares authorized; 19,610 shares and 50,000 shares
issued and outstanding as of
June 30, 2021 and December 31, 2020, respectively;
aggregate liquidation preference
of $25,228 and $60,418 as of June 30, 2021 and
December 31, 2020, respectively
|
21,820
|
|
50,975
|
Series B Redeemable
Convertible Preferred Stock, par value $0.0001 per share;
22,050
shares authorized; 21,038 shares and 22,050 shares
issued and outstanding as of
June 30, 2021 and December 31, 2020, respectively;
aggregate liquidation preference
of $24,490 and $24,100 as of June 30, 2021 and
December 31, 2020, respectively
|
23,141
|
|
22,686
|
Stockholders'
deficit:
|
|
|
|
Class A Common Stock,
par value of $0.0001 per share; 400,000,000 shares authorized;
93,377,516 shares and 72,515,342 shares issued and
outstanding as of June 30, 2021
and December 31, 2020,
respectively
|
9
|
|
7
|
Class B Common Stock,
par value of $0.0001 per share; 20,000,000 shares authorized;
0 shares and 2,302,936 shares issued and outstanding
as of June 30, 2021 and
December 31, 2020, respectively
|
-
|
|
-
|
Additional paid in
capital
|
237,359
|
|
217,212
|
Accumulated
deficit
|
(360,713)
|
|
(322,431)
|
Total Stockholders'
deficit
|
(123,345)
|
|
(105,212)
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT
|
$
379,630
|
|
$
323,223
|
U.S. WELL
SERVICES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited and
amounts in thousands)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$ (38,326)
|
|
$
(196,220)
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
20,942
|
|
49,366
|
Change in fair value
of warrant liabilities
|
7,287
|
|
(5,189)
|
Impairment of
long-lived assets
|
-
|
|
147,543
|
Loss on disposal of
assets
|
1,891
|
|
5,097
|
Convertible senior
notes converted into sales of patent licenses
|
(22,500)
|
|
-
|
Loss on
extinguishment of debt
|
839
|
|
-
|
Share-based
compensation expense
|
3,661
|
|
3,481
|
Other non-cash
items
|
5,271
|
|
11,362
|
Changes in working
capital
|
(7,436)
|
|
6,073
|
Net cash provided
by (used in) operating activities
|
(28,371)
|
|
21,513
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchase of property
and equipment
|
(24,841)
|
|
(40,756)
|
Proceeds from sale of
property and equipment and insurance proceeds from
damaged property and equipment
|
8,553
|
|
15,036
|
Net cash used in
investing activities
|
(16,288)
|
|
(25,720)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
revolving credit facility
|
24,722
|
|
11,250
|
Repayments of
revolving credit facility
|
(14,750)
|
|
(33,381)
|
Proceeds from
issuance of long-term debt
|
3,004
|
|
-
|
Repayments of
long-term debt
|
(12,563)
|
|
(2,500)
|
Payment of fees
related to debt extinguishment
|
(41)
|
|
-
|
Proceeds from
issuance of convertible senior notes
|
86,500
|
|
-
|
Proceeds from
issuance of notes payable
|
9,139
|
|
-
|
Repayments of notes
payable
|
(3,697)
|
|
(4,109)
|
Repayments of amounts
under equipment financing
|
(1,738)
|
|
(1,513)
|
Principal payments
under capital lease obligation
|
(109)
|
|
(2,816)
|
Proceeds from
issuance of common stock, net
|
13,562
|
|
19,875
|
Deferred financing
costs
|
(6,569)
|
|
(20,061)
|
Net cash provided
by (used in) financing activities
|
97,460
|
|
(33,255)
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
52,801
|
|
(37,462)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
5,262
|
|
41,404
|
Cash and cash
equivalents and restricted cash, end of period
|
$
58,063
|
|
$
3,942
|
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; 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 LOSS (GAAP) TO EBITDA AND ADJUSTED EBITDA
(NON-GAAP)
|
(unaudited and
amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Net loss
|
$ (17,716)
|
|
$ (19,602)
|
|
$
(20,610)
|
|
$ (38,326)
|
|
$
(196,220)
|
Interest expense,
net
|
7,333
|
|
5,665
|
|
6,183
|
|
13,516
|
|
13,621
|
Income tax
expense
|
(27)
|
|
13
|
|
-
|
|
(27)
|
|
(737)
|
Depreciation and
amortization
|
9,836
|
|
17,358
|
|
11,106
|
|
20,942
|
|
49,366
|
EBITDA
|
(574)
|
|
3,434
|
|
(3,321)
|
|
(3,895)
|
|
(133,970)
|
Impairment loss
(1)
|
-
|
|
-
|
|
-
|
|
-
|
|
147,543
|
Litigation settlement
(2)
|
35,000
|
|
-
|
|
-
|
|
35,000
|
|
-
|
Loss (gain) on
disposal of assets (3)
|
(545)
|
|
853
|
|
2,436
|
|
1,891
|
|
5,097
|
Change in fair value
of warrant liabilities (4)
|
136
|
|
1,364
|
|
7,151
|
|
7,287
|
|
(5,189)
|
Loss on
extinguishment of debt (5)
|
839
|
|
-
|
|
-
|
|
839
|
|
-
|
Share-based
compensation (6)
|
2,013
|
|
1,403
|
|
1,648
|
|
3,661
|
|
3,481
|
Fleet start-up,
relocation, and reactivation costs (7)
|
-
|
|
573
|
|
2,301
|
|
2,301
|
|
573
|
Severance, business
restructuring, and
market-driven costs (8)
|
-
|
|
839
|
|
1,144
|
|
1,144
|
|
3,679
|
Transaction related
costs (9)
|
-
|
|
-
|
|
149
|
|
149
|
|
-
|
Adjusted
EBITDA
|
36,869
|
|
8,466
|
|
11,508
|
|
48,377
|
|
21,214
|
Patent license sales
(10)
|
(22,500)
|
|
-
|
|
-
|
|
(22,500)
|
|
-
|
Adjusted EBITDA,
excluding patent license sales
|
$
14,369
|
|
$
8,466
|
|
$
11,508
|
|
$
25,877
|
|
$
21,214
|
|
(1) Represents
non-cash impairment charge on long-lived assets.
|
(2) Represents cash
payment of a litigation settlement.
|
(3) Represents net
losses on the disposal of property and equipment.
|
(4) Represents a
non-cash change in fair value of warrant liabilities.
|
(5) Represents costs
related to early debt repayments.
|
(6) Represents
non-cash share-based compensation.
|
(7) Represents costs
related to the start-up, relocation and / or reactivation of
hydraulic fracturing fleets.
|
(8) Represents
severance, restructuring cost related to reductions in force and
facility closures, and market driven-costs associated with the
COVID-19 pandemic.
|
(9) Represents
third-party professional fees and other costs related to strategic
and capital market transactions.
|
(10) Represents
income associated with licensing of Clean Fleet®
technology.
|
View original
content:https://www.prnewswire.com/news-releases/us-well-services-announces-second-quarter-2021-financial-and-operational-results-301353611.html
SOURCE U.S. Well Services, Inc.