HOUSTON, March 30,
2022 /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 of 2021.
Full-Year and Fourth Quarter 2021 Highlights
- Fully contracted existing electric fleets and executed customer
contracts for three of four newbuild Nyx Clean Fleets®
- Reduced Term A Loans and Term B Loans (collectively the "Senior
Secured Term Loan") balance by $125.6
million to $120.7 million at
December 31, 2021 from $246.3 million at December
31, 2020 and extended term for 0.0% applicable interest rate
through March 31, 2022
- Further reduced our Senior Secured Term Loan balance during the
first quarter of 2022 to less than $103.0
million, securing an interest rate of (i) 1.0% per annum in
cash and (ii) 4.125% paid-in-kind for the remainder of 2022
- Averaged 6.4 fully-utilized fleets for full-year 2021 vs. 5.4
fully-utilized fleets for full-year 2020
- Total revenue of $250.5 million
for full-year 2021, compared to $244.0
million for full-year 2020
- Net loss attributable to the Company of $70.6 million for the full-year 2021, as compared
to $229.3 million for 2020
- Adjusted EBITDA(1) for full-year 2021 was
$40.0 million, or $6.2 million of Adjusted EBITDA per
fully-utilized fleet(2) vs. $31.1
million of Adjusted EBITDA and $5.8
million of Adjusted EBITDA per fully-utilized fleet for the
full-year 2020
- Averaged 4.1 fully-utilized fleets for the fourth quarter of
2021, as compared to 5.0 for the third quarter of 2021
- Total revenue of $38.9 million
for the fourth quarter of 2021, compared to $56.5 million for the third quarter of 2021
- Net loss attributable to the Company of $22.7 million for the fourth quarter of 2021 vs.
$9.6 million for the third quarter of
2021
- Adjusted EBITDA was $(7.9)
million for the fourth quarter of 2021, or $(7.8) million of Annualized Adjusted EBITDA per
fully-utilized fleet. This compares to $(0.5) million of Adjusted EBITDA and
$(0.4) million of Annualized Adjusted
EBITDA per fully-utilized fleet for the third quarter of 2021
- Total liquidity, consisting of cash, restricted cash and
availability under the Company's asset-backed revolving credit
facility, was $20.2 million as of
December 31, 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.
|
"U.S. Well Services faced considerable challenges during the
fourth quarter of 2021 despite improvements in the overall market
prices for commodities and pressure pumping services," commented
Joel Broussard, the Company's
President and CEO. "As we previously disclosed, the Company's
operations were adversely impacted by both the lack of truck
drivers and an inability for our customers to obtain all the sand
and water required for use in our operations. The result of
these impacts was downtime in the quarter equivalent to 16.4 days
per fully-utilized fleet."
"In spite of these challenges, we believe the outlook for U.S.
Well Services is favorable. Both demand and pricing for frac
fleets have rebounded sharply since mid-2021, and demand for
electric frac fleets in particular is the strongest we have seen
since we deployed the industry's first electric fleet in
2014. We believe our existing fleets and the newbuild Nyx
Clean Fleets® that we expect to deliver throughout 2022 will
command attractive pricing and improve the Company's financial and
strategic positioning."
Outlook
Throughout the fourth quarter of 2021, supply chain disruptions
affected the availability of truck drivers, proppant and water
required for efficient pressure pumping operations, which in turn
limited our pumping activity. Although these challenges have
persisted into the first quarter of 2022, U.S. Well Services worked
diligently to modify existing contracts with several key customers
to mitigate the severity of the financial impact we may face from
supply-chain driven non-productive time.
The recent spike in crude oil and natural gas prices created
elevated demand for pressure pumping services, resulting in
considerable tightening of the market for our services.
Availability of workable equipment, experienced crews, and
materials used in pressure pumping operations remains limited, and
service companies have demonstrated capital spending discipline on
new fleets and are not replacing aging equipment. As a
result, pricing for pressure pumping services has increased
significantly compared to prevailing market pricing over the last
several quarters. High-spec, next-generation fracturing
fleets such as our all-electric Clean Fleets® continue to
command the most attractive pricing. In addition, we recently
redeployed a conventional frac fleet to bridge the time gap between
our customers' current service needs and the deployment of one of
our newbuild Nyx Clean Fleets®. Upon delivery, the newbuild
Nyx Clean Fleet® will replace the conventional fleet and
continue to work under a long-term contract.
We believe U.S. Well Services is well positioned to benefit from
the rapidly improving pressure pumping market dynamics, and will
continue to serve as the market leader in electric pressure pumping
services as we deliver our four newbuild Nyx Clean Fleets®.
To date we have secured customer contracts for three of the four
newbuilds and expect these fleets to begin delivering mid-Q2 2022
with the last newbuild delivery in Q4 2022.
Full-Year 2021 Financial
Summary
For the year ended December 31,
2021, total revenue increased 3% to $250.5 million, compared to $244.0 million in 2020. This increase in
revenue was driven primarily by our higher average fleet count and
increased sales of materials, including sand and chemicals.
Costs of services, excluding depreciation and amortization, for
the year ended December 31, 2021,
increased 18% to $221.4 million from
$187.8 million in 2020. The
increase in our cost of services is primarily attributable to
increased labor costs as well as costs associated with procuring
third party power generation services as the Company transitioned
away from owning power generation assets.
Selling, general and administrative expense ("SG&A") for the
year ended December 31, 2021,
decreased to $32.6 million from
$43.6 million in 2020.
Excluding stock-based compensation and non-cash charges for
doubtful collections of Accounts Receivable, SG&A totaled
$23.0 million for the full-year 2021,
compared to $23.5 million in
2020.
Net loss attributable to the Company was $70.6 million for the full-year 2021 as compared
to $229.3 million for 2020.
Adjusted EBITDA for the full-year 2021 was $40.0 million, which equates to $6.2 million per fully-utilized fleet.
Fourth Quarter 2021 Financial
Summary
Revenue for the fourth quarter of 2021 was $38.9 million as compared to $56.5 million for the third quarter of
2021. During the fourth quarter of 2021 our active fleet
count decreased to 5.0 fleets from 5.7 active fleets in the third
quarter. Utilization of the Company's active fleets averaged
82% during the fourth quarter of 2021, resulting in a
fully-utilized equivalent of 4.1 fleets. This compares to 89%
utilization and a fully-utilized equivalent of 5.0 fleets for the
third quarter of 2021.
Costs of services, excluding depreciation and amortization, for
the fourth quarter of 2021 decreased to $41.4 million from $58.1
million in the third quarter of 2021, driven primarily by
the reduction in our active fleet count and lower repair and
maintenance costs resulting from the reduction in pressure pumping
activity.
Selling, general and administrative expense ("SG&A")
decreased to $6.8 million in the
fourth quarter of 2021 from $11.1
million in the third quarter of 2021. Excluding
stock-based compensation of $1.8
million, SG&A was $5.0
million in the fourth quarter of 2021, compared to
$6.5 million in the third quarter of
2021. This sequential decrease was primarily attributable to a
reduction in personnel costs.
Net loss attributable to the Company increased to $22.7 million in the fourth quarter of 2021 from
$9.6 million in the third quarter of
2021. Adjusted EBITDA for the fourth quarter of 2021 declined
to $(7.9) million, or $(7.8) million of Annualized Adjusted EBITDA per
fully-utilized fleet, as compared to $(0.5)
million of Adjusted EBITDA and $(0.4)
million of Annualized Adjusted EBITDA per fully-utilized
fleet in the third quarter of 2021.
Operational Highlights
U.S. Well Services exited the year with four active electric
frac fleets. All four fleets were working in the Appalachian
Basin. Currently, the Company is operating six fleets, of
which one is in the Permian Basin, one is in the Rockies, and four
are in the Appalachian Basin.
Over the next several months, U.S. Well Services expects to
begin taking delivery of its newbuild Nyx Clean Fleets®. The
first newbuild fleet is expected to deliver in mid-Q2 2022, with
the remaining fleets delivering in late Q2 2022, mid-Q3 2022 and Q4
2022, respectively.
Balance Sheet and Capital
Spending
As of December 31, 2021, total
liquidity was $20.2 million,
consisting of $9.1 million of cash
and restricted cash on the Company's balance sheet and $11.1 million of availability under the Company's
asset-backed revolving credit facility, and net debt was
$283.2 million.
During the year we reduced our Senior Secured Term Loan balance
by $125.6 million to $120.7 million at December
31, 2021 from $246.3 million
at December 31, 2020, which under the
terms of our Senior Secured Term Loan Credit Agreement, extended
the period of 0.0% interest rate through March 31, 2022.
Since year end, we further reduced our Senior Secured Term Loan
balance to less than $103.0 million,
securing an interest rate of (i) 1.0% per annum in cash and (ii)
4.125% per annum payable in-kind for the last three quarters of
2022.
During the first quarter of 2022, the Company raised
approximately $68.4 million of gross
proceeds from the issuance of approximately $46.9 million of common equity and borrowings of
$21.5 million of last-out senior
secured term loans (the "Term C Loan") under the Senior Secured
Term Loan Credit Agreement, a portion of which will be used to help
fund capital expenditures related to the Company's newbuild Nyx
Clean Fleets®.
Maintenance capital expenditures, on an accrual basis were
$2.8 million for the fourth quarter
of 2021.
Conference Call
Information
The Company will host a conference call at 10:00 am Central / 11:00
am Eastern Time on Thursday, March 31, 2022 to discuss
financial and operating results for the full-year and fourth
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
April 7 and may be accessed by
dialing 201-612-7415 and using the passcode 13727811#. 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 pressure
pumping services and a market leader in electric fracture
stimulation. The Company's patented electric pressure pumping
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 pressure pumping technology dramatically
decreases emissions, sound pollution and truck traffic 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 and pricing for the Company's services, anticipated delivery
dates for the Company's Nyx Clean Fleets®, availability under the
Company's credit facilities, availability of workable equipment,
experienced crews, and materials used in pressure pumping
operations, the Company's financial position and prospects and
liquidity, the Company's ability to identify, evaluate and complete
any capital markets or strategic alternative, the Company's
business strategy and objectives for future operations, results of
discussions with potential customers, potential new contract
opportunities and planned construction, the potential term of
existing customer contracts, 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," "believe," "intend," "estimate," "project," "plan,"
"may," "anticipate," "will," "should," "could," 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, including the impact of epidemics, pandemics or other major
public health issues, such as the COVID-19 coronavirus, as well as
the other risks, uncertainties and assumptions identified in this
release or as 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 and other factors
described in the Company's public disclosures and filings with the
SEC, including those described under "Risk Factors" in its most
recent annual report on Form 10-K and in its subsequently filed
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. New factors emerge from time to time,
and it is not possible for us to predict all such factors.
Contacts:
|
U.S. Well
Services
|
|
Josh Shapiro, VP,
Finance and Investor Relations
|
|
832)
562-3730
|
|
IR@uswellservices.com
|
|
|
|
Dennard Lascar Investor Relations
|
|
Zach Vaughan
|
|
(713)
529-6600
|
|
USWS@dennardlascar.com
|
- Tables to Follow -
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|
U.S. WELL SERVICES,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except for active fleets and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
Statement of
Operations Data:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
38,929
|
|
$
48,093
|
|
$
56,477
|
|
$
250,463
|
|
$
244,007
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of services
(excluding depreciation and
amortization)
|
41,366
|
|
42,482
|
|
58,115
|
|
221,364
|
|
187,803
|
Depreciation and
amortization
|
7,522
|
|
14,594
|
|
6,980
|
|
35,444
|
|
80,353
|
Selling, general and
administrative expenses
|
6,832
|
|
13,256
|
|
11,142
|
|
32,578
|
|
43,632
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
-
|
|
-
|
|
147,543
|
Litigation
settlement
|
-
|
|
-
|
|
-
|
|
35,000
|
|
-
|
(Gain) loss on disposal
of assets
|
(11,786)
|
|
1,260
|
|
(12,001)
|
|
(21,896)
|
|
7,112
|
Loss from
operations
|
(5,005)
|
|
(23,499)
|
|
(7,759)
|
|
(52,027)
|
|
(222,436)
|
Interest expense,
net
|
(9,220)
|
|
(5,857)
|
|
(10,634)
|
|
(33,370)
|
|
(25,226)
|
Change in fair value of
warrant liabilities
|
3,083
|
|
(630)
|
|
2,052
|
|
(2,152)
|
|
6,342
|
Patent license
sales
|
-
|
|
-
|
|
-
|
|
22,500
|
|
-
|
(Loss) gain on
extinguishment of debt, net
|
(11,948)
|
|
-
|
|
6,645
|
|
(6,142)
|
|
-
|
Other income
|
346
|
|
27
|
|
117
|
|
515
|
|
108
|
Loss before income
taxes
|
(22,744)
|
|
(29,959)
|
|
(9,579)
|
|
(70,676)
|
|
(241,212)
|
Income tax
benefit
|
-
|
|
-
|
|
-
|
|
(27)
|
|
(824)
|
Net loss
|
(22,744)
|
|
(29,959)
|
|
(9,579)
|
|
(70,649)
|
|
(240,388)
|
Net loss attributable
to noncontrolling interest
|
-
|
|
(100)
|
|
-
|
|
(44)
|
|
(11,048)
|
Net loss attributable
to U.S. Well Services, Inc.
|
(22,744)
|
|
(29,859)
|
|
(9,579)
|
|
(70,605)
|
|
(229,340)
|
Dividends accrued on
Series A preferred stock
|
(1,049)
|
|
(1,764)
|
|
(997)
|
|
(5,857)
|
|
(7,214)
|
Dividends accrued on
Series B preferred stock
|
-
|
|
(702)
|
|
(3,069)
|
|
(4,591)
|
|
(2,049)
|
Deemed and imputed
dividends on Series A
preferred stock
|
-
|
|
(444)
|
|
-
|
|
(750)
|
|
(13,022)
|
Deemed dividends on
Series B preferred stock
|
-
|
|
(410)
|
|
(1,509)
|
|
(7,178)
|
|
(564)
|
Exchange of Series A
preferred stock for
convertible senior notes
|
-
|
|
-
|
|
-
|
|
8,936
|
|
-
|
Net loss attributable
to U.S. Well Services, Inc.
common stockholders
|
$
(23,793)
|
|
$
(33,179)
|
|
$
(15,154)
|
|
$
(80,045)
|
|
$
(252,189)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to U.S. Well Services, Inc. stockholders per common
share:
|
|
|
|
Basic and diluted
(1)
|
$
(0.46)
|
|
$
(1.65)
|
|
$
(0.50)
|
|
$
(2.44)
|
|
$
(13.32)
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and diluted
(1)
|
51,607
|
|
19,658
|
|
29,802
|
|
32,394
|
|
18,512
|
|
|
|
|
|
|
|
|
|
|
Other Financial and
Operational Data:
|
|
|
|
|
|
|
|
|
Capital Expenditures
(2)
|
$
9,579
|
|
$
5,649
|
|
$
25,225
|
|
$
53,460
|
|
$
36,766
|
Adjusted EBITDA
(3)
|
$
(7,922)
|
|
$
1,807
|
|
$
(466)
|
|
$
39,989
|
|
$
31,146
|
Average Active
Fleets
|
5.0
|
|
5.7
|
|
5.7
|
|
7.5
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
(1) Prior periods have
been adjusted to reflect the 1-for-3.5 reverse stock split on
September 30, 2021.
|
|
|
|
|
(2) Capital
expenditures presented above are shown on an accrual
basis.
|
|
|
|
(3) 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.
|
CONSOLIDATED BALANCE
SHEETS
|
(in thousands,
except share and per share amounts)
|
(audited)
|
|
December
31,
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
6,384
|
|
$
3,693
|
Restricted
cash
|
2,736
|
|
1,569
|
Accounts receivable
(net of allowance for doubtful accounts of $0 and $12,000
as of December 31, 2021 and 2020,
respectively)
|
25,743
|
|
44,393
|
Inventory,
net
|
6,351
|
|
7,965
|
Assets held for
sale
|
2,043
|
|
-
|
Prepaids and other
current assets
|
18,748
|
|
10,707
|
Total current
assets
|
62,005
|
|
68,327
|
Property and equipment,
net
|
162,664
|
|
235,332
|
Intangible assets,
net
|
12,500
|
|
13,466
|
Goodwill
|
4,971
|
|
4,971
|
Other assets
|
1,417
|
|
1,127
|
TOTAL ASSETS
|
$
243,557
|
|
$
323,223
|
LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
29,180
|
|
$
36,362
|
Accrued expenses and
other current liabilities
|
16,842
|
|
14,781
|
Notes
payable
|
2,320
|
|
998
|
Current portion of
long-term debt
|
5,000
|
|
10,000
|
Current portion of
equipment financing
|
3,412
|
|
3,519
|
Current portion of
capital lease obligations
|
1,092
|
|
54
|
Total current
liabilities
|
57,846
|
|
65,714
|
Warrant
liabilities
|
3,557
|
|
1,619
|
Convertible senior
notes
|
105,769
|
|
-
|
Long-term
debt
|
167,507
|
|
274,555
|
Long-term equipment
financing
|
5,128
|
|
9,347
|
Long-term capital lease
obligations
|
2,112
|
|
-
|
Other long-term
liabilities
|
6,875
|
|
3,539
|
Total
liabilities
|
348,794
|
|
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 December
31, 2021 and 2020, respectively; aggregate liquidation preference
of $27,274 and $60,418
as of December 31, 2021 and 2020, respectively
|
23,866
|
|
50,975
|
Series B Redeemable
Convertible Preferred Stock, par value $0.0001 per share;
22,050
shares authorized; 0 shares and 22,050 shares issued and
outstanding as of December 31,
2021 and 2020, respectively; aggregate liquidation preference of $0
and $24,100 as of
December 31, 2021 and 2020, respectively
|
-
|
|
22,686
|
Stockholders'
deficit:
|
|
|
|
Class A Common Stock,
par value of $0.0001 per share; 400,000,000 shares authorized;
53,148,952 shares and 20,718,659 shares issued and outstanding as
of December 31, 2021
and 2020, respectively (1)
|
5
|
|
2
|
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 December
31, 2021 and 2020,
respectively
|
-
|
|
-
|
Additional paid in
capital (1)
|
263,928
|
|
217,217
|
Accumulated
deficit
|
(393,036)
|
|
(322,431)
|
Total Stockholders'
deficit
|
(129,103)
|
|
(105,212)
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT
|
$
243,557
|
|
$
323,223
|
|
|
|
|
(1) Prior periods have
been adjusted to reflect the 1-for-3.5 reverse stock split on
September 30, 2021.
|
|
|
|
|
U.S. WELL SERVICES,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(audited)
|
|
Year Ended December
31,
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
Net loss
|
$
(70,649)
|
|
$
(240,388)
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
35,444
|
|
80,353
|
Change in fair value of
warrant liabilities
|
2,152
|
|
(6,342)
|
Impairment of
long-lived assets
|
-
|
|
147,543
|
(Gain) loss on disposal
of assets
|
(21,896)
|
|
7,112
|
Convertible senior
notes converted into sales of patent licenses
|
(22,500)
|
|
-
|
Loss on extinguishment
of debt, net
|
6,142
|
|
-
|
Share-based
compensation expense
|
11,694
|
|
10,056
|
Other non-cash
items
|
18,557
|
|
17,547
|
Changes in working
capital
|
21,779
|
|
(7,265)
|
Net cash provided by
(used in) operating activities
|
(19,277)
|
|
8,616
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
Purchase of property
and equipment
|
(57,724)
|
|
(55,943)
|
Proceeds from sale of
property and equipment and insurance proceeds from
damaged property and equipment
|
113,880
|
|
20,944
|
Net cash provided by
(used in) investing activities
|
56,156
|
|
(34,999)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
Proceeds from revolving
credit facility
|
32,160
|
|
68,957
|
Repayments of revolving
credit facility
|
(41,700)
|
|
(85,497)
|
Proceeds from issuance
of long-term debt
|
3,004
|
|
31,996
|
Repayments of long-term
debt
|
(125,506)
|
|
(3,750)
|
Payment of fees related
to debt extinguishment
|
(2,025)
|
|
-
|
Proceeds from issuance
of convertible senior notes
|
97,500
|
|
-
|
Proceeds from issuance
of notes payable
|
10,699
|
|
1,121
|
Repayments of notes
payable
|
(9,377)
|
|
(7,507)
|
Repayments of amounts
under equipment financing
|
(4,327)
|
|
(3,199)
|
Principal payments
under capital lease obligations
|
(620)
|
|
(10,474)
|
Proceeds from issuance
of preferred stock and warrants, net
|
-
|
|
19,596
|
Proceeds from issuance
of common stock, net
|
14,667
|
|
400
|
Deferred financing
costs
|
(7,496)
|
|
(21,402)
|
Net cash provided by
(used in) financing activities
|
(33,021)
|
|
(9,759)
|
Net increase (decrease)
in cash and cash equivalents and restricted cash
|
3,858
|
|
(36,142)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
5,262
|
|
41,404
|
Cash and cash
equivalents and restricted cash, end of period
|
$
9,120
|
|
$
5,262
|
|
|
|
|
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: impairments; litigation
settlement; (gain) loss on disposal of assets; change in fair value
of warrant liabilities; (gain) loss on extinguishment of debt;
share-based compensation; 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)
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
Net loss
|
$
(22,744)
|
|
$
(29,959)
|
|
$
(9,579)
|
|
$
(70,649)
|
|
$
(240,388)
|
|
Interest expense,
net
|
9,220
|
|
5,857
|
|
10,634
|
|
33,370
|
|
25,226
|
|
Income tax
benefit
|
-
|
|
-
|
|
-
|
|
(27)
|
|
(824)
|
|
Depreciation and
amortization
|
7,522
|
|
14,594
|
|
6,980
|
|
35,444
|
|
80,353
|
|
EBITDA
|
(6,002)
|
|
(9,508)
|
|
8,035
|
|
(1,862)
|
|
(135,633)
|
|
Impairment loss
(1)
|
-
|
|
-
|
|
-
|
|
-
|
|
147,543
|
|
Litigation settlement
(2)
|
-
|
|
-
|
|
-
|
|
35,000
|
|
-
|
|
(Gain) loss on disposal
of assets (3)
|
(11,786)
|
|
1,260
|
|
(12,001)
|
|
(21,896)
|
|
7,112
|
|
Change in fair value of
warrant liabilities (4)
|
(3,083)
|
|
630
|
|
(2,052)
|
|
2,152
|
|
(6,342)
|
|
(Gain) loss on
extinguishment of debt, net (5)
|
11,948
|
|
-
|
|
(6,645)
|
|
6,142
|
|
-
|
|
Share-based
compensation (6)
|
2,177
|
|
5,537
|
|
5,856
|
|
11,694
|
|
10,056
|
|
Fleet laydown and
reactivation costs (7)
|
1,094
|
|
2,460
|
|
2,790
|
|
6,185
|
|
3,033
|
|
Severance, business
restructuring, and
market-driven costs (8)
|
36
|
|
1,428
|
|
646
|
|
1,826
|
|
5,377
|
|
Transaction related
costs (9)
|
-
|
|
-
|
|
-
|
|
149
|
|
-
|
|
Replacement of damaged
equipment (10)
|
(2,306)
|
|
-
|
|
2,306
|
|
-
|
|
-
|
|
Non-recurring labor and
mobilization costs (11)
|
-
|
|
-
|
|
393
|
|
393
|
|
-
|
|
Sales and use tax audit
expense (12)
|
-
|
|
-
|
|
206
|
|
206
|
|
-
|
|
Adjusted
EBITDA
|
(7,922)
|
|
1,807
|
|
(466)
|
|
39,989
|
|
31,146
|
|
Patent license sales
(13)
|
-
|
|
-
|
|
-
|
|
(22,500)
|
|
-
|
|
Adjusted EBITDA,
excluding patent license sales
|
$
(7,922)
|
|
$
1,807
|
|
$
(466)
|
|
$
17,489
|
|
$
31,146
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents non-cash
impairment charge on long-lived assets.
|
|
|
|
|
|
|
|
(2) Represents cash
payment of a litigation settlement.
|
|
|
|
|
|
|
|
|
|
(3) Represents net
(gains) and 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 on the Senior Secured Term Loan,
offset by the gain associated with the forgiveness of the PPP
Loan in the third quarter of 2021.
|
(6) Represents non-cash
share-based compensation.
|
|
|
|
|
|
|
|
|
|
(7) Represents costs
related to the start-up, relocation and / or reactivation of
pressure pumping fleets, as well as costs associated with exiting
the diesel pressure pumping market.
|
|
(8) Represents
restructuring costs, severance related to reductions in force and
facility closures, and market driven-costs including COVID-19
testing for employees.
|
(9) Represents
third-party professional fees and other costs related to strategic
and capital markets transactions.
|
|
(10) Represents costs
associated with demobilization and inspection of damaged equipment,
as well as replacement rental equipment and services, which we
intend to include in an insurance claim.
|
|
(11) Represents costs
associated with mobilizing equipment and personnel for terminated
disaster relief-related power generation project.
|
(12) Represents
interest and penalties associated with Ohio sales and use tax audit
related to 2012 and 2013 tax years.
|
|
(13) Represents income
associated with licensing of Clean Fleet® technology.
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/us-well-services-announces-full-year-and-fourth-quarter-2021-financial-and-operational-results-301514053.html
SOURCE US Well Services