Solaris Oilfield Infrastructure Announces Fourth Quarter and Full Year 2023 Results and Announces Continued Shareholder Returns for First Quarter 2024
Fourth Quarter 2023 Summary Results and Shareholder Return Highlights
-
Revenue of
$63 million -
Net income of
$7 million , or$0.14 per diluted Class A share; Adjusted pro forma net income of$7 million , or$0.15 per fully diluted share -
Adjusted EBITDA of
$21 million -
Generated
$24 million of cash flow from operations and$16 million in free cash flow; reduced borrowings outstanding on the credit facility by$7 million -
Returned a total of
$47 million to shareholders in 2023 through share repurchases and dividends -
Solaris’ fourth quarter 2023 dividend of
$0.12 per share, which was paid onDecember 11, 2023 , was a 9% increase from the prior quarter and represented Solaris’ third per-share dividend raise since initiation in 2018 -
Approved first quarter 2024 dividend of
$0.12 per share onFebruary 19, 2024 , to be paid onMarch 21, 2024 , which, once paid, will represent Solaris’ 22nd consecutive dividend -
Repurchased approximately 85,000 shares for
$0.7 million during the fourth quarter of 2023; fromJanuary 19, 2024 toFebruary 9, 2024 , repurchased an additional 1.1 million shares for approximately$8 million
“2023 was a strong year for Solaris on multiple fronts. We generated positive free cash flow, raised our dividend per share twice, returned
“Looking to 2024, we expect to generate significantly higher free cash flow as we harvest cash from the organic investments we made over the last couple of years. We believe this additional cash flow should support continued shareholder returns and maintain our healthy balance sheet, while creating optionality in our long-term strategy for capital allocation, including organic and inorganic investments.”
Shareholder Returns
On
On
Solaris repurchased 85,278 shares during the fourth quarter of 2023 for
Pro forma for the announced first quarter 2024 dividend and share repurchases to date, Solaris has returned approximately
Free Cash Flow, Capital Expenditures and Liquidity
Free cash flow (defined as net cash provided by operating activities less investment in property, plant and equipment) after asset disposals was positive
Capital expenditures in the fourth quarter of 2023 were approximately
As of
Fourth Quarter 2023 Financial Review
Net income was
Revenue was
During the fourth quarter of 2023, Solaris earned revenue on 103 fully utilized systems, which includes sand systems, top fill systems and AutoBlend™ systems. Total fully utilized systems were down 5% from third quarter 2023 and down 6% from fourth quarter 2022. Solaris followed an average of 64 industry frac crews on a fully utilized basis in the fourth quarter of 2023, which was down 4% from 67 frac crews followed in the third quarter of 2023.
See “About Non-GAAP Measures” below for additional detail and reconciliations of GAAP to non-GAAP measures in the accompanying financial tables.
Full Year 2023 Financial Review
Net income was
Revenue was
Conference Call
Solaris will host a conference call to discuss its results for fourth quarter and full year 2023 on
An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days. It can be accessed by dialing (877) 344-7529 within
About Non-GAAP Measures
In addition to financial results determined in accordance with generally accepted accounting principles in
About
Forward Looking Statements
This press release contains 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. Examples of forward-looking statements include, but are not limited to, our business strategy, our industry, our future profitability, the volatility in global oil markets, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future long-term contracts, our future business and financial performance and our results of operations, and the other risks discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended
|
||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue |
|
|
60,069 |
|
|
|
77,658 |
|
|
|
63,147 |
|
|
|
269,474 |
|
|
|
300,000 |
|
Revenue - related parties |
|
|
3,278 |
|
|
|
6,396 |
|
|
|
6,529 |
|
|
|
23,473 |
|
|
|
20,005 |
|
Total revenue |
|
|
63,347 |
|
|
|
84,054 |
|
|
|
69,676 |
|
|
|
292,947 |
|
|
|
320,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of services (excluding depreciation and amortization) |
|
|
36,870 |
|
|
|
56,696 |
|
|
|
42,102 |
|
|
|
177,847 |
|
|
|
219,775 |
|
Depreciation and amortization |
|
|
9,518 |
|
|
|
8,657 |
|
|
|
9,179 |
|
|
|
36,185 |
|
|
|
30,433 |
|
Property tax contingency (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,072 |
|
Selling, general and administrative |
|
|
7,229 |
|
|
|
5,873 |
|
|
|
6,359 |
|
|
|
26,951 |
|
|
|
23,074 |
|
Impairment of fixed assets |
|
|
— |
|
|
|
— |
|
|
|
1,423 |
|
|
|
1,423 |
|
|
|
— |
|
Other operating expense, net (2) |
|
|
489 |
|
|
|
2,746 |
|
|
|
613 |
|
|
|
639 |
|
|
|
1,847 |
|
Total operating costs and expenses |
|
|
54,106 |
|
|
|
73,972 |
|
|
|
59,676 |
|
|
|
243,045 |
|
|
|
278,201 |
|
Operating income |
|
|
9,241 |
|
|
|
10,082 |
|
|
|
10,000 |
|
|
|
49,902 |
|
|
|
41,804 |
|
Interest expense, net |
|
|
(912 |
) |
|
|
(181 |
) |
|
|
(1,057 |
) |
|
|
(3,307 |
) |
|
|
(489 |
) |
Total other expense |
|
|
(912 |
) |
|
|
(181 |
) |
|
|
(1,057 |
) |
|
|
(3,307 |
) |
|
|
(489 |
) |
Income before income tax expense |
|
|
8,329 |
|
|
|
9,901 |
|
|
|
8,943 |
|
|
|
46,595 |
|
|
|
41,315 |
|
Provision for income taxes |
|
|
1,370 |
|
|
|
1,913 |
|
|
|
1,305 |
|
|
|
7,820 |
|
|
|
7,803 |
|
Net income |
|
|
6,959 |
|
|
|
7,988 |
|
|
|
7,638 |
|
|
|
38,775 |
|
|
|
33,512 |
|
Less: net income related to non-controlling interests |
|
|
(2,658 |
) |
|
|
(3,192 |
) |
|
|
(2,704 |
) |
|
|
(14,439 |
) |
|
|
(12,354 |
) |
Net income attributable to |
|
$ |
4,301 |
|
|
$ |
4,796 |
|
|
$ |
4,934 |
|
|
$ |
24,336 |
|
|
$ |
21,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share of Class A common stock - basic |
|
$ |
0.14 |
|
|
$ |
0.15 |
|
|
$ |
0.16 |
|
|
$ |
0.78 |
|
|
$ |
0.64 |
|
Earnings per share of Class A common stock - diluted |
|
$ |
0.14 |
|
|
$ |
0.15 |
|
|
$ |
0.16 |
|
|
$ |
0.78 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic weighted average shares of Class A common stock outstanding |
|
|
29,024 |
|
|
|
31,640 |
|
|
|
29,025 |
|
|
|
29,693 |
|
|
|
31,479 |
|
Diluted weighted average shares of Class A common stock outstanding |
|
|
29,024 |
|
|
|
31,640 |
|
|
|
29,025 |
|
|
|
29,693 |
|
|
|
31,479 |
|
(1) |
Property tax contingency represents a reserve related to an unfavorable |
(2) |
Other expense includes the sale or disposal of assets, insurance gains, credit losses or recoveries, severance costs, and other settlements. |
|
||||||
|
|
|
|
|
||
|
|
2023 |
|
2022 |
||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,833 |
|
$ |
8,835 |
Accounts receivable, net of allowances of |
|
|
44,916 |
|
|
64,543 |
Accounts receivable - related party |
|
|
2,378 |
|
|
4,925 |
Prepaid expenses and other current assets |
|
|
4,342 |
|
|
5,151 |
Inventories |
|
|
6,672 |
|
|
5,289 |
Assets held for sale |
|
|
3,000 |
|
|
— |
Total current assets |
|
|
67,141 |
|
|
88,743 |
Property, plant and equipment, net |
|
|
325,121 |
|
|
298,160 |
Non-current inventories |
|
|
1,593 |
|
|
1,569 |
Non-current receivables, net of allowance of |
|
|
1,663 |
|
|
— |
Operating lease right-of-use assets |
|
|
10,721 |
|
|
4,033 |
|
|
|
13,004 |
|
|
13,004 |
Intangible assets, net |
|
|
702 |
|
|
1,429 |
Deferred tax assets |
|
|
48,010 |
|
|
55,370 |
Other assets |
|
|
342 |
|
|
268 |
Total assets |
|
$ |
468,297 |
|
$ |
462,576 |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
12,654 |
|
$ |
25,934 |
Accrued liabilities |
|
|
20,292 |
|
|
25,252 |
Current portion of payables related to Tax Receivable Agreement |
|
|
— |
|
|
1,092 |
Current portion of operating lease liabilities |
|
|
1,385 |
|
|
917 |
Current portion of finance lease liabilities |
|
|
2,462 |
|
|
1,924 |
Other current liabilities |
|
|
408 |
|
|
790 |
Total current liabilities |
|
|
37,201 |
|
|
55,909 |
Operating lease liabilities, net of current |
|
|
11,541 |
|
|
6,212 |
Borrowings under the credit agreement |
|
|
30,000 |
|
|
8,000 |
Finance lease liabilities, net of current |
|
|
2,401 |
|
|
3,429 |
Payables related to Tax Receivable Agreement |
|
|
71,530 |
|
|
71,530 |
Other long-term liabilities |
|
|
44 |
|
|
367 |
Total liabilities |
|
|
152,717 |
|
|
145,447 |
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
Class A common stock, |
|
|
290 |
|
|
317 |
Class B common stock, |
|
|
— |
|
|
— |
Additional paid-in capital |
|
|
188,379 |
|
|
202,551 |
Retained earnings |
|
|
17,314 |
|
|
12,847 |
Total stockholders' equity attributable to Solaris and members' equity |
|
|
205,983 |
|
|
215,715 |
Non-controlling interest |
|
|
109,597 |
|
|
101,414 |
Total stockholders' equity |
|
|
315,580 |
|
|
317,129 |
Total liabilities and stockholders' equity |
|
$ |
468,297 |
|
$ |
462,576 |
|
||||||||||||
|
|
Year Ended
|
|
Three Months Ended
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|||
Net income |
|
$ |
38,775 |
|
|
$ |
33,512 |
|
|
$ |
6,959 |
|
Adjustment to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
36,185 |
|
|
|
30,433 |
|
|
|
9,518 |
|
Impairment of fixed assets |
|
|
1,423 |
|
|
|
— |
|
|
|
— |
|
Loss on disposal of asset |
|
|
603 |
|
|
|
3,707 |
|
|
|
(1 |
) |
Stock-based compensation |
|
|
7,741 |
|
|
|
6,092 |
|
|
|
1,911 |
|
Amortization of debt issuance costs |
|
|
158 |
|
|
|
159 |
|
|
|
44 |
|
Allowance for credit losses |
|
|
810 |
|
|
|
(420 |
) |
|
|
650 |
|
Deferred income tax expense |
|
|
7,251 |
|
|
|
7,683 |
|
|
|
1,232 |
|
Change in payables related to Tax Receivable Agreement |
|
|
— |
|
|
|
(663 |
) |
|
|
— |
|
Other |
|
|
(913 |
) |
|
|
(169 |
) |
|
|
(735 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|||
Accounts receivable |
|
|
17,155 |
|
|
|
(34,611 |
) |
|
|
1,067 |
|
Accounts receivable - related party |
|
|
2,547 |
|
|
|
(1,318 |
) |
|
|
4,687 |
|
Prepaid expenses and other assets |
|
|
2,363 |
|
|
|
6,394 |
|
|
|
2,100 |
|
Inventories |
|
|
(6,186 |
) |
|
|
(4,622 |
) |
|
|
(1,166 |
) |
Accounts payable |
|
|
(10,630 |
) |
|
|
13,337 |
|
|
|
(4,161 |
) |
Accrued liabilities |
|
|
(6,266 |
) |
|
|
5,410 |
|
|
|
1,478 |
|
Payments pursuant to tax receivable agreement |
|
|
(1,092 |
) |
|
|
— |
|
|
|
— |
|
Property tax contingency (1) |
|
|
— |
|
|
|
3,072 |
|
|
|
— |
|
Net cash provided by operating activities |
|
|
89,924 |
|
|
|
67,996 |
|
|
|
23,583 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|||
Investment in property, plant and equipment |
|
|
(64,388 |
) |
|
|
(81,411 |
) |
|
|
(7,271 |
) |
Cash received from insurance proceeds |
|
|
122 |
|
|
|
1,463 |
|
|
|
— |
|
Proceeds from disposal of assets |
|
|
2,263 |
|
|
|
409 |
|
|
|
98 |
|
Net cash used in investing activities |
|
|
(62,003 |
) |
|
|
(79,539 |
) |
|
|
(7,173 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|||
Share and unit repurchases and retirements |
|
|
(26,436 |
) |
|
|
— |
|
|
|
(679 |
) |
Distribution to unitholders (includes distribution of |
|
|
(6,634 |
) |
|
|
(5,763 |
) |
|
|
(1,641 |
) |
Dividend paid to Class A common stock shareholders |
|
|
(14,072 |
) |
|
|
(13,804 |
) |
|
|
(3,670 |
) |
Payments under finance leases |
|
|
(2,502 |
) |
|
|
(1,610 |
) |
|
|
(594 |
) |
Payments under insurance premium financing |
|
|
(1,794 |
) |
|
|
(1,484 |
) |
|
|
(414 |
) |
Proceeds from stock option exercises |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
Cancelled shares withheld for taxes from RSU vesting |
|
|
(1,364 |
) |
|
|
(1,106 |
) |
|
|
— |
|
Borrowings under the credit agreement |
|
|
35,000 |
|
|
|
11,000 |
|
|
|
— |
|
Repayment of credit agreement |
|
|
(13,000 |
) |
|
|
(3,000 |
) |
|
|
(7,000 |
) |
Payments related to debt issuance costs |
|
|
(121 |
) |
|
|
(358 |
) |
|
|
(30 |
) |
Net cash used in financing activities |
|
|
(30,923 |
) |
|
|
(16,119 |
) |
|
|
(14,028 |
) |
Net (decrease)/increase in cash and cash equivalents |
|
|
(3,002 |
) |
|
|
(27,662 |
) |
|
|
2,382 |
|
Cash and cash equivalents at beginning of period |
|
|
8,835 |
|
|
|
36,497 |
|
|
|
3,451 |
|
Cash and cash equivalents at end of period |
|
$ |
5,833 |
|
|
$ |
8,835 |
|
|
$ |
5,833 |
|
Non-cash activities |
|
|
|
|
|
|
|
|
|
|||
Investing: |
|
|
|
|
|
|
|
|
|
|||
Capitalized depreciation in property, plant and equipment |
|
|
432 |
|
|
|
555 |
|
|
|
135 |
|
Capitalized stock based compensation |
|
|
539 |
|
|
|
386 |
|
|
|
129 |
|
Property and equipment additions incurred but not paid at period-end |
|
|
1,284 |
|
|
|
3,173 |
|
|
|
1,284 |
|
Property, plant and equipment additions transferred from inventory |
|
|
4,780 |
|
|
|
1,826 |
|
|
|
2,205 |
|
Additions to fixed assets through finance leases |
|
|
2,012 |
|
|
|
6,863 |
|
|
|
— |
|
Financing: |
|
|
|
|
|
|
|
|
|
|||
Insurance premium financing |
|
|
1,520 |
|
|
|
1,931 |
|
|
|
— |
|
Cash paid for: |
|
|
|
|
|
|
|
|
|
|||
Interest |
|
|
2,958 |
|
|
|
249 |
|
|
|
879 |
|
Income taxes |
|
|
478 |
|
|
|
370 |
|
|
|
— |
|
(1) |
Property tax contingency represents a reserve related to an unfavorable |
|
||||||||||||||||||
EBITDA AND ADJUSTED EBITDA |
||||||||||||||||||
We view EBITDA and Adjusted EBITDA as important indicators of performance. We use them to assess our results of operations because it allows us, our investors and our lenders to compare our operating performance on a consistent basis across periods by removing the effects of varying levels of interest expense due to our capital structure, depreciation and amortization due to our asset base and other items that impact the comparability of financial results from period to period. We present EBITDA and Adjusted EBITDA because we believe they provide useful information regarding trends and other factors affecting our business in addition to measures calculated under generally accepted accounting principles in |
||||||||||||||||||
We define EBITDA as net income, plus (i) depreciation and amortization expense, (ii) interest expense and (iii) income tax expense, including franchise taxes. We define Adjusted EBITDA as EBITDA plus (i) stock-based compensation expense and (ii) certain non-cash items and extraordinary, unusual or non-recurring gains, losses or expenses. |
||||||||||||||||||
EBITDA and Adjusted EBITDA should not be considered in isolation or as substitutes for an analysis of our results of operation and financial condition as reported in accordance with GAAP. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternative to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. |
||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for each of the periods indicated. |
||||||||||||||||||
|
||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net income |
|
$ |
6,959 |
|
|
$ |
7,988 |
|
|
$ |
7,638 |
|
$ |
38,775 |
|
$ |
33,512 |
|
Depreciation and amortization |
|
|
9,518 |
|
|
|
8,657 |
|
|
|
9,179 |
|
|
36,185 |
|
|
30,433 |
|
Interest expense, net |
|
|
912 |
|
|
|
181 |
|
|
|
1,057 |
|
|
3,307 |
|
|
489 |
|
Income taxes (1) |
|
|
1,370 |
|
|
|
1,913 |
|
|
|
1,305 |
|
|
7,820 |
|
|
7,803 |
|
EBITDA |
|
$ |
18,759 |
|
|
$ |
18,739 |
|
|
$ |
19,179 |
|
$ |
86,087 |
|
$ |
72,237 |
|
Property tax contingency (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
3,072 |
|
Stock-based compensation expense (3) |
|
|
1,911 |
|
|
|
1,427 |
|
|
|
1,917 |
|
|
7,732 |
|
|
6,092 |
|
Loss on disposal of assets |
|
|
(4 |
) |
|
|
2,729 |
|
|
|
746 |
|
|
386 |
|
|
3,754 |
|
Impairment on fixed assets (4) |
|
|
— |
|
|
|
— |
|
|
|
1,423 |
|
|
1,423 |
|
|
— |
|
Change in payables related to Tax Receivable Agreement (5) |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
— |
|
|
(663 |
) |
Credit losses |
|
|
650 |
|
|
|
— |
|
|
|
— |
|
|
810 |
|
|
(420 |
) |
Other (6) |
|
|
6 |
|
|
|
159 |
|
|
|
163 |
|
|
255 |
|
|
(290 |
) |
Adjusted EBITDA |
|
$ |
21,322 |
|
|
$ |
23,044 |
|
|
$ |
23,428 |
|
$ |
96,693 |
|
$ |
83,782 |
|
_________________________ | |
(1) |
Federal and state income taxes. |
(2) |
Property tax contingency represents a reserve related to an unfavorable |
(3) |
Represents stock-based compensation expense related to restricted stock awards and performance-based restricted stock units. |
(4) |
Impairment recorded on certain fixed assets classified as assets held for sale during the three months ended |
(5) |
Reduction in liability due to state tax rate change. |
(6) |
Other includes gains on insurance claims and other settlements. |
ADJUSTED PRO FORMA NET INCOME AND ADJUSTED PRO FORMA EARNINGS PER FULLY DILUTED SHARE |
||||||||||||||||||||
Adjusted pro forma net income represents net income attributable to Solaris assuming the full exchange of all outstanding membership interests in |
||||||||||||||||||||
When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period over period and relative to its competitors. By assuming the full exchange of all outstanding Solaris LLC Units, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in net income attributable to Solaris as a result of increases in its ownership of |
||||||||||||||||||||
Adjusted pro forma net income and adjusted pro forma earnings per fully diluted share are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully diluted share should not be considered alternatives to net income and earnings per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the net income attributable to Solaris. Adjusted pro forma net income and adjusted pro forma earnings per fully diluted share should be evaluated in conjunction with GAAP financial results. A reconciliation of adjusted pro forma net income to net income attributable to Solaris, the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully diluted share are set forth below. |
||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
||||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to Solaris |
|
$ |
4,301 |
|
|
$ |
4,796 |
|
|
$ |
4,934 |
|
|
$ |
24,336 |
|
|
$ |
21,158 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reallocation of net income attributable to non-controlling interests from the assumed exchange of LLC Interests (1) |
|
|
2,658 |
|
|
|
3,192 |
|
|
|
2,704 |
|
|
|
14,439 |
|
|
|
12,354 |
|
Loss on disposal of assets |
|
|
(4 |
) |
|
|
2,729 |
|
|
|
746 |
|
|
|
386 |
|
|
|
3,754 |
|
Impairment on fixed assets (2) |
|
|
— |
|
|
|
— |
|
|
|
1,423 |
|
|
|
1,423 |
|
|
|
— |
|
Property tax contingency (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,072 |
|
Change in payables related to Tax Receivable Agreement (4) |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
(663 |
) |
Credit losses |
|
|
650 |
|
|
|
— |
|
|
|
— |
|
|
|
810 |
|
|
|
(420 |
) |
Other (5) |
|
|
6 |
|
|
|
159 |
|
|
|
163 |
|
|
|
255 |
|
|
|
(290 |
) |
Incremental income tax expense |
|
|
(976 |
) |
|
|
(671 |
) |
|
|
(1,453 |
) |
|
|
(4,192 |
) |
|
|
(3,452 |
) |
Adjusted pro forma net income |
|
$ |
6,635 |
|
|
$ |
10,195 |
|
|
$ |
8,517 |
|
|
$ |
37,457 |
|
|
$ |
35,513 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares of Class A common stock outstanding |
|
|
29,024 |
|
|
|
31,640 |
|
|
|
29,025 |
|
|
|
29,693 |
|
|
|
31,479 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Potentially dilutive shares (6) |
|
|
15,252 |
|
|
|
14,968 |
|
|
|
15,448 |
|
|
|
15,268 |
|
|
|
14,979 |
|
Adjusted pro forma fully weighted average shares of Class A common stock outstanding - diluted |
|
|
44,276 |
|
|
|
46,608 |
|
|
|
44,473 |
|
|
|
44,961 |
|
|
|
46,458 |
|
Adjusted pro forma earnings per share - diluted |
|
$ |
0.15 |
|
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
$ |
0.83 |
|
|
$ |
0.76 |
|
(1) |
Assumes the exchange of all outstanding Solaris LLC Units for shares of Class A common stock at the beginning of the relevant reporting period, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests. |
(2) |
Impairment recorded on certain fixed assets classified as assets held for sale during the three months ended |
(3) |
Property tax contingency represents a reserve related to an unfavorable |
(4) |
Reduction in liability due to state tax rate change. |
(5) |
Other includes gains on insurance claims and other settlements. |
(6) |
Assumes the exchange of all outstanding Solaris LLC Units for shares of Class A common stock and vesting of Restricted stock awards and Performance-based restricted stock awards at the beginning of the relevant reporting periods. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226713512/en/
Senior Vice President, Finance and Investor Relations
(281) 501-3070
IR@solarisoilfield.com
Source: