SELECT WATER SOLUTIONS ANNOUNCES FIRST QUARTER 2024 FINANCIAL RESULTS AND OPERATIONAL UPDATES
Generated revenue of
Water Infrastructure segment generated revenue of
Adjusted EBITDA improved 3% sequentially during the first quarter of 2024 relative to the fourth quarter of 2023
On
On
Contracted multiple new pipeline gathering, recycling and disposal infrastructure projects supported by long-term contracts in the
"Importantly, the first quarter represented another strong step forward in the execution of our Water Infrastructure growth strategy, with Water Infrastructure segment revenues growing by 4.4% sequentially, and more notably, gross margins before D&A increased to just shy of 47% during the first quarter. We closed on four infrastructure acquisitions during the first quarter as well as another shortly after quarter end, all of which will report into our Water Infrastructure segment. These acquisitions supported continued revenue growth in our Water Infrastructure segment during the first quarter and have set the stage for even stronger growth during the second quarter. In addition to the previously announced acquisitions in the Haynesville and Rockies regions during January, we closed on subsequent acquisitions in the Permian and Bakken regions as well. With the recent Trinity acquisition, we are adding more than 600,000 barrels per day of permitted disposal capacity, primarily in the
"Additionally, through the Trinity and Buckhorn acquisitions, we also continued to expand our high-margin, full lifecycle waste management solutions. With Trinity, we added an additional solids waste disposal facility in the
"On the organic business development side, we also executed multiple additional long-term contracts during the first quarter for new infrastructure projects, each of which are expected to come online before year-end. These new projects add further scale to our existing infrastructure networks in the
"Driven by enhanced disposal utilization and the contributions of our accretive acquisitions, we expect to maintain our strong Water Infrastructure gross margins, while also seeing meaningful margin gains in our Water Services and Chemical Technologies segments during the second quarter. These strategic initiatives and margin improvement opportunities should support modest consolidated revenue growth, with Adjusted EBITDA increasing during the second quarter to
"In summary, I was pleased with our first quarter 2024 financial performance, and I believe with our continued M&A execution and our organic infrastructure investments, we are well positioned to capitalize on additional opportunities ahead as one of the fastest growing infrastructure platforms in the industry. Ultimately, I believe that Select remains distinctively positioned in the energy landscape to advance a unique integration of water and chemical technology solutions with high-margin, long-term contracted infrastructure and I look forward to making further progress in the second quarter," concluded
First Quarter 2024 Consolidated Financial Information
Revenue for the first quarter of 2024 was
For the first quarter of 2024, gross profit was
Selling, General & Administrative expenses ("SG&A") during the first quarter of 2024 was
Adjusted EBITDA was
Business Segment Information
The Water Services segment generated revenues of
The Water Infrastructure segment generated revenues of
The Chemical Technologies segment generated revenues of
Cash Flow and Capital Expenditures
Cash flow from operations for the first quarter of 2024 was
Net capital expenditures for the first quarter of 2024 were
Cash flow used in investing activities during the first quarter of 2024 included
Cash flows from financing activities during the first quarter of 2024 included
Balance Sheet and Capital Structure
Total cash and cash equivalents were
As of
Total liquidity was
Business Development Updates
Select executed four new long-term contracts for produced water gathering, recycling and disposal in the
Haynesville Gathering Expansion & Acreage Dedication
During the first quarter of 2024, Select signed a multi-year gathering and disposal agreement with a wellbore dedication and minimum volume commitment ("MVC") with a large public operator in the
Permian Basin Recycling Facility Expansion and Acreage Dedication
During the first quarter of 2024, Select signed a multi-year agreement for the construction of recycling and pipeline infrastructure to connect a large public operator in the
Permian Basin Recycling Pipeline Tie-In & Acquisition
During the first quarter of 2024, Select signed a multi-year recycling and disposal agreement with a large public operator in the
Recycling and Disposal Pipeline Connection and Acreage Dedication
During the first quarter of 2024, Select signed a multi-year agreement with a large public operator in the
Trinity Environmental Services Acquisition
On
Buckhorn Acquisition
On
Conference Call
Select has scheduled a conference call on
About
Select is a leading provider of sustainable water and chemical solutions to the energy industry. These solutions are supported by the Company's critical water infrastructure assets, chemical manufacturing and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the Company's continued success. For more information, please visit Select's website, https://www.selectwater.com.
Cautionary Statement Regarding Forward-Looking Statements
All statements in this communication other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "could," "believe," "anticipate," "expect," "intend," "project," "will," "estimates," "preliminary," "forecast" and other similar expressions. Examples of forward-looking statements include, but are not limited to, the expectations of plans, business strategies, objectives and growth, projected financial results and future financial and operational performance, expected capital expenditures, our share repurchase program and future dividends. Although we believe that the expectations reflected, and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include the risks that the benefits contemplated from our recent acquisitions may not be realized, the ability of Select to successfully integrate the acquired businesses' operations, including employees, and realize anticipated synergies and cost savings and the potential impact of the consummation of the acquisitions on relationships, including with employees, suppliers, customers, competitors and creditors. Factors that could materially impact such forward-looking statements include, but are not limited to: the global macroeconomic uncertainty related to the
WTTR-ER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share and per share data) |
||||||||||
|
||||||||||
|
|
Three months ended, |
|
|||||||
|
|
|
|
|
|
|
|
|||
Revenue |
|
|
|
|
|
|
|
|
|
|
Water Services |
|
$ |
228,307 |
|
$ |
241,751 |
|
$ |
274,678 |
|
Water Infrastructure |
|
|
63,508 |
|
|
60,852 |
|
|
55,466 |
|
Chemical Technologies |
|
|
74,733 |
|
|
72,257 |
|
|
86,448 |
|
Total revenue |
|
|
366,548 |
|
|
374,860 |
|
|
416,592 |
|
Costs of revenue |
|
|
|
|
|
|
|
|
|
|
Water Services |
|
|
181,532 |
|
|
187,731 |
|
|
219,942 |
|
Water Infrastructure |
|
|
33,692 |
|
|
34,473 |
|
|
34,333 |
|
Chemical Technologies |
|
|
61,755 |
|
|
62,061 |
|
|
69,709 |
|
Depreciation, amortization and accretion |
|
|
36,892 |
|
|
36,037 |
|
|
32,943 |
|
Total costs of revenue |
|
|
313,871 |
|
|
320,302 |
|
|
356,927 |
|
Gross profit |
|
|
52,677 |
|
|
54,558 |
|
|
59,665 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
43,980 |
|
|
46,401 |
|
|
35,829 |
|
Depreciation and amortization |
|
|
1,258 |
|
|
430 |
|
|
595 |
|
Impairments and abandonments |
|
|
45 |
|
|
1,053 |
|
|
11,166 |
|
Lease abandonment costs |
|
|
389 |
|
|
(31) |
|
|
76 |
|
Total operating expenses |
|
|
45,672 |
|
|
47,853 |
|
|
47,666 |
|
Income from operations |
|
|
7,005 |
|
|
6,705 |
|
|
11,999 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sales of property and equipment and divestitures, net |
|
|
325 |
|
|
(1,898) |
|
|
2,911 |
|
Interest expense, net |
|
|
(1,272) |
|
|
(103) |
|
|
(1,483) |
|
Tax receivable agreements expense |
|
|
— |
|
|
(38,187) |
|
|
— |
|
Other |
|
|
(282) |
|
|
(58) |
|
|
842 |
|
Income (loss) before income tax benefit (expense) and equity in losses of unconsolidated entities |
|
|
5,776 |
|
|
(33,541) |
|
|
14,269 |
|
Income tax (expense) benefit |
|
|
(1,452) |
|
|
61,264 |
|
|
(198) |
|
Equity in losses of unconsolidated entities |
|
|
(449) |
|
|
(84) |
|
|
(366) |
|
Net income |
|
|
3,875 |
|
|
27,639 |
|
|
13,705 |
|
Less: net income attributable to noncontrolling interests |
|
|
(250) |
|
|
(44) |
|
|
(1,358) |
|
Net income attributable to Select Water Solutions, Inc. |
|
$ |
3,625 |
|
$ |
27,595 |
|
$ |
12,347 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
Class A—Basic |
|
$ |
0.04 |
|
$ |
0.28 |
|
$ |
0.12 |
|
Class B—Basic |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
Class A—Diluted |
|
$ |
0.04 |
|
$ |
0.27 |
|
$ |
0.12 |
|
Class B—Diluted |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
SELECT WATER SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share data) |
|||||||||
|
|||||||||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,753 |
|
$ |
57,083 |
|
$ |
6,028 |
Accounts receivable trade, net of allowance for credit losses |
|
|
323,113 |
|
|
322,611 |
|
|
492,613 |
Accounts receivable, related parties |
|
|
330 |
|
|
171 |
|
|
607 |
Inventories |
|
|
37,636 |
|
|
38,653 |
|
|
40,846 |
Prepaid expenses and other current assets |
|
|
37,886 |
|
|
35,541 |
|
|
39,774 |
Total current assets |
|
|
411,718 |
|
|
454,059 |
|
|
579,868 |
Property and equipment |
|
|
1,242,133 |
|
|
1,144,989 |
|
|
1,112,899 |
Accumulated depreciation |
|
|
(650,952) |
|
|
(627,408) |
|
|
(597,861) |
Total property and equipment, net |
|
|
591,181 |
|
|
517,581 |
|
|
515,038 |
Right-of-use assets, net |
|
|
42,931 |
|
|
39,504 |
|
|
44,562 |
|
|
|
31,202 |
|
|
4,683 |
|
|
— |
Other intangible assets, net |
|
|
127,649 |
|
|
116,189 |
|
|
125,799 |
Deferred tax assets, net |
|
|
60,489 |
|
|
61,617 |
|
|
— |
Other long-term assets |
|
|
26,137 |
|
|
24,557 |
|
|
19,985 |
Total assets |
|
$ |
1,291,307 |
|
$ |
1,218,190 |
|
$ |
1,285,252 |
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
54,389 |
|
$ |
42,582 |
|
$ |
77,585 |
Accrued accounts payable |
|
|
62,833 |
|
|
66,182 |
|
|
75,625 |
Accounts payable and accrued expenses, related parties |
|
|
4,227 |
|
|
4,086 |
|
|
4,469 |
Accrued salaries and benefits |
|
|
17,692 |
|
|
28,401 |
|
|
15,431 |
Accrued insurance |
|
|
17,227 |
|
|
19,720 |
|
|
23,503 |
Sales tax payable |
|
|
2,973 |
|
|
1,397 |
|
|
4,036 |
Current portion of tax receivable agreements liabilities |
|
|
469 |
|
|
469 |
|
|
— |
Accrued expenses and other current liabilities |
|
|
35,800 |
|
|
33,511 |
|
|
19,783 |
Current operating lease liabilities |
|
|
16,241 |
|
|
15,005 |
|
|
16,898 |
Current portion of finance lease obligations |
|
|
196 |
|
|
194 |
|
|
19 |
Total current liabilities |
|
|
212,047 |
|
|
211,547 |
|
|
237,349 |
Long-term tax receivable agreements liabilities |
|
|
37,718 |
|
|
37,718 |
|
|
— |
Long-term operating lease liabilities |
|
|
39,667 |
|
|
37,799 |
|
|
43,372 |
Long-term debt |
|
|
75,000 |
|
|
— |
|
|
75,500 |
Other long-term liabilities |
|
|
38,554 |
|
|
38,954 |
|
|
45,696 |
Total liabilities |
|
|
402,986 |
|
|
326,018 |
|
|
401,917 |
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Class A common stock, |
|
|
1,027 |
|
|
1,022 |
|
|
1,090 |
Class B common stock, |
|
|
162 |
|
|
162 |
|
|
162 |
Preferred stock, |
|
|
— |
|
|
— |
|
|
— |
Additional paid-in capital |
|
|
1,001,967 |
|
|
1,008,095 |
|
|
1,063,149 |
Accumulated deficit |
|
|
(233,166) |
|
|
(236,791) |
|
|
(298,847) |
Total stockholders' equity |
|
|
769,990 |
|
|
772,488 |
|
|
765,554 |
Noncontrolling interests |
|
|
118,331 |
|
|
119,684 |
|
|
117,781 |
Total equity |
|
|
888,321 |
|
|
892,172 |
|
|
883,335 |
Total liabilities and equity |
|
$ |
1,291,307 |
|
$ |
1,218,190 |
|
$ |
1,285,252 |
SELECT WATER SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||||||||
|
|||||||||
|
|
Three months ended, |
|||||||
|
|
|
|
|
|
|
|||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
3,875 |
|
$ |
27,639 |
|
$ |
13,705 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion |
|
|
38,150 |
|
|
36,467 |
|
|
33,538 |
Deferred tax expense (benefit) |
|
|
1,129 |
|
|
(61,959) |
|
|
(6) |
Tax receivable agreements expense |
|
|
— |
|
|
38,187 |
|
|
— |
(Gain) loss on disposal of property and equipment and divestitures |
|
|
(325) |
|
|
1,898 |
|
|
(2,911) |
Equity in losses of unconsolidated entities |
|
|
449 |
|
|
84 |
|
|
366 |
Bad debt expense |
|
|
596 |
|
|
1,204 |
|
|
1,975 |
Amortization of debt issuance costs |
|
|
122 |
|
|
123 |
|
|
122 |
Inventory adjustments |
|
|
(33) |
|
|
1,792 |
|
|
75 |
Equity-based compensation |
|
|
6,359 |
|
|
4,582 |
|
|
2,964 |
Impairments and abandonments |
|
|
45 |
|
|
1,053 |
|
|
11,166 |
Other operating items, net |
|
|
312 |
|
|
506 |
|
|
(218) |
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
128 |
|
|
31,833 |
|
|
(64,922) |
Prepaid expenses and other assets |
|
|
(2,180) |
|
|
12,068 |
|
|
(5,431) |
Accounts payable and accrued liabilities |
|
|
(16,498) |
|
|
(12,284) |
|
|
(8,439) |
Net cash provided by (used in) operating activities |
|
|
32,129 |
|
|
83,193 |
|
|
(18,016) |
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(33,763) |
|
|
(33,465) |
|
|
(27,885) |
Acquisitions, net of cash received |
|
|
(108,311) |
|
|
(4,275) |
|
|
(9,418) |
Proceeds received from sales of property and equipment |
|
|
5,166 |
|
|
5,511 |
|
|
6,724 |
Net cash used in investing activities |
|
|
(136,908) |
|
|
(32,229) |
|
|
(30,579) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Borrowings from revolving line of credit |
|
|
90,000 |
|
|
— |
|
|
76,750 |
Payments on revolving line of credit |
|
|
(15,000) |
|
|
— |
|
|
(17,250) |
Payments of finance lease obligations |
|
|
(66) |
|
|
(43) |
|
|
(5) |
Dividends and distributions paid |
|
|
(7,487) |
|
|
(7,017) |
|
|
(6,206) |
Contributions from noncontrolling interests |
|
|
— |
|
|
— |
|
|
4,950 |
Repurchase of common stock |
|
|
(6,996) |
|
|
(11,865) |
|
|
(10,935) |
Net cash provided by (used in) financing activities |
|
|
60,451 |
|
|
(18,925) |
|
|
47,304 |
Effect of exchange rate changes on cash |
|
|
(2) |
|
|
1 |
|
|
(3) |
Net (decrease) increase in cash and cash equivalents |
|
|
(44,330) |
|
|
32,040 |
|
|
(1,294) |
Cash and cash equivalents, beginning of period |
|
|
57,083 |
|
|
25,043 |
|
|
7,322 |
Cash and cash equivalents, end of period |
|
$ |
12,753 |
|
$ |
57,083 |
|
$ |
6,028 |
Comparison of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, gross profit before depreciation, amortization and accretion ("D&A"), gross margin before D&A and free cash flow are not financial measures presented in accordance with accounting principles generally accepted in the
Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. Gross profit and gross margin are the GAAP measures most directly comparable to gross profit before D&A and gross margin before D&A, respectively. Net cash provided by (used in) operating activities is the GAAP measure most directly comparable to free cash flow. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A or free cash flow in isolation or as substitutes for an analysis of our results as reported under GAAP. Because EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A and free cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, which is the most directly comparable GAAP measure for the periods presented:
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Three months ended |
||||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
(unaudited) (in thousands) |
||||||
Net cash provided by (used in) operating activities |
|
$ |
32,129 |
|
$ |
83,193 |
|
$ |
(18,016) |
||
Purchase of property and equipment |
|
|
(33,763) |
|
|
(33,465) |
|
|
(27,885) |
||
Proceeds received from sale of property and equipment |
|
|
5,166 |
|
|
5,511 |
|
|
6,724 |
||
Free cash flow |
|
$ |
3,532 |
|
$ |
55,239 |
|
$ |
(39,177) |
||
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net income, which is the most directly comparable GAAP measure for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended, |
|||||||
|
|
|
|
|
|
|
|
|||
|
|
|
(unaudited) (in thousands) |
|||||||
Net income |
|
|
$ |
3,875 |
|
$ |
27,639 |
|
$ |
13,705 |
Interest expense, net |
|
|
|
1,272 |
|
|
103 |
|
|
1,483 |
Income tax expense (benefit) |
|
|
|
1,452 |
|
|
(61,264) |
|
|
198 |
Depreciation, amortization and accretion |
|
|
|
38,150 |
|
|
36,467 |
|
|
33,538 |
EBITDA |
|
|
|
44,749 |
|
|
2,945 |
|
|
48,924 |
Trademark abandonment and other impairments |
|
|
|
45 |
|
|
1,053 |
|
|
11,166 |
Non-cash loss on sale of assets or subsidiaries |
|
|
|
1,748 |
|
|
518 |
|
|
823 |
Non-cash compensation expenses |
|
|
|
6,359 |
|
|
4,582 |
|
|
2,964 |
Non-recurring transaction and rebranding costs |
|
|
|
4,929 |
|
|
10,934 |
|
|
2,881 |
Non-recurring severance expense |
|
|
|
648 |
|
|
— |
|
|
— |
Lease abandonment costs |
|
|
|
389 |
|
|
(31) |
|
|
76 |
Tax receivable agreements expense |
|
|
|
— |
|
|
38,187 |
|
|
— |
Equity in losses of unconsolidated entities |
|
|
|
449 |
|
|
84 |
|
|
366 |
Other |
|
|
|
442 |
|
|
2 |
|
|
4 |
Adjusted EBITDA |
|
|
$ |
59,758 |
|
$ |
58,274 |
|
$ |
67,204 |
The following table presents a reconciliation of gross profit before D&A to total gross profit, which is the most directly comparable GAAP measure, and a calculation of gross margin before D&A for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended, |
|||||||
|
|
|
|
|
|
|
|||
|
|
(unaudited) (in thousands) |
|||||||
Gross profit by segment |
|
|
|
|
|
|
|
|
|
Water services |
|
$ |
25,661 |
|
$ |
31,234 |
|
$ |
32,137 |
Water infrastructure |
|
|
15,915 |
|
|
15,909 |
|
|
12,872 |
Chemical technologies |
|
|
11,101 |
|
|
7,415 |
|
|
14,656 |
As reported gross profit |
|
|
52,677 |
|
|
54,558 |
|
|
59,665 |
|
|
|
|
|
|
|
|
|
|
Plus D&A |
|
|
|
|
|
|
|
|
|
Water services |
|
|
21,114 |
|
|
22,786 |
|
|
22,599 |
Water infrastructure |
|
|
13,901 |
|
|
10,470 |
|
|
8,261 |
Chemical technologies |
|
|
1,877 |
|
|
2,781 |
|
|
2,083 |
Total D&A |
|
|
36,892 |
|
|
36,037 |
|
|
32,943 |
|
|
|
|
|
|
|
|
|
|
Gross profit before D&A |
|
$ |
89,569 |
|
$ |
90,595 |
|
$ |
92,608 |
|
|
|
|
|
|
|
|
|
|
Gross profit before D&A by segment |
|
|
|
|
|
|
|
|
|
Water services |
|
|
46,776 |
|
|
54,020 |
|
|
54,737 |
Water infrastructure |
|
|
29,816 |
|
|
26,379 |
|
|
21,132 |
Chemical technologies |
|
|
12,978 |
|
|
10,196 |
|
|
16,739 |
Total gross profit before D&A |
|
$ |
89,569 |
|
$ |
90,595 |
|
$ |
92,608 |
|
|
|
|
|
|
|
|
|
|
Gross margin before D&A by segment |
|
|
|
|
|
|
|
|
|
Water services |
|
|
20.5 % |
|
|
22.3 % |
|
|
19.9 % |
Water infrastructure |
|
|
46.9 % |
|
|
43.3 % |
|
|
38.1 % |
Chemical technologies |
|
|
17.4 % |
|
|
14.1 % |
|
|
19.4 % |
Total gross margin before D&A |
|
|
24.4 % |
|
|
24.2 % |
|
|
22.2 % |
View original content:https://www.prnewswire.com/news-releases/select-water-solutions-announces-first-quarter-2024-financial-results-and-operational-updates-302132173.html
SOURCE