Pason Reports First Quarter 2024 Results and Declares Quarterly Dividend
|
Three Months Ended |
|||||
|
2024 |
2023 |
Change |
|||
(CDN 000s, except per share data) |
($) |
($) |
( %) |
|||
North American Drilling Revenue |
73,604 |
79,775 |
(8) |
|||
International Drilling Revenue |
14,632 |
15,590 |
(6) |
|||
Completions Revenue3 |
12,785 |
— |
nmf |
|||
Solar and Energy Storage Revenue |
3,738 |
2,864 |
31 |
|||
Total Revenue |
104,759 |
98,229 |
7 |
|||
EBITDA (1) |
91,510 |
51,755 |
77 |
|||
Adjusted EBITDA (1) |
42,425 |
52,410 |
(19) |
|||
As a % of revenue |
40.5 |
53.4 |
(1,290) bps |
|||
Funds flow from operations |
34,846 |
43,673 |
(20) |
|||
Per share – basic |
0.44 |
0.54 |
(18) |
|||
Per share – diluted |
0.44 |
0.53 |
(18) |
|||
Cash from operating activities |
31,014 |
46,265 |
(33) |
|||
Net capital expenditures (2) |
19,281 |
11,555 |
67 |
|||
Free cash flow (1) |
11,733 |
34,710 |
(66) |
|||
Cash dividends declared (per share) |
0.13 |
0.12 |
8 |
|||
Net income |
69,123 |
35,454 |
95 |
|||
Net income attributable to |
69,529 |
35,842 |
94 |
|||
Per share – basic |
0.87 |
0.44 |
98 |
|||
Per share – diluted |
0.87 |
0.44 |
98 |
|||
As at |
|
|
Change |
|||
(CDN 000s) |
($) |
($) |
( %) |
|||
Cash and cash equivalents |
70,050 |
171,773 |
(59) |
|||
Short-term investments |
4,187 |
— |
nmf |
|||
Total Cash (1) |
74,237 |
171,773 |
(57) |
|||
Working capital |
119,641 |
212,561 |
(44) |
|||
Total interest bearing debt |
— |
— |
— |
|||
Shares outstanding end of period (#) |
79,493,854 |
79,685,025 |
nmf |
(1) Non-GAAP and supplementary financial measures are defined under Non-GAAP Financial Measures in this press release. |
(2) Includes additions to property, plant, and equipment and development costs, net of proceeds on disposal from |
(3) The Completions segment includes results generated by IWS, which were not part of the Company's consolidated reporting group until |
The North American Drilling business unit generated
The International Drilling business unit generated
The Company's new Completions business unit, formed after the acquisition of IWS on
Revenue generated by the Solar and Energy Storage business unit was
The Company recorded net income attributable to
Sequentially, Q1 2024 consolidated revenue of
In the first quarter of 2024,
"
"While
"Revenue per Industry Day in
"We anticipate continued growth in our North American Drilling segment, even in the midst of relatively flat industry activity in the near term, with increased product adoption being driven by customers' growing usage of data-driven automation and analytics technologies. We have experienced a very positive market response as we have begun rolling out an innovative new drilling mud analyzer to provide continuous, real-time readings of critical drilling mud parameters. We are seeing increased momentum in our automation products, including the Drilling Advisory System and Toolface Control."
"Revenue from
"Our International Drilling segment continues to post strong results, with revenue of
"At the start of the first quarter,
"We are focused on establishing a compelling data aggregation solution in the completions space, bringing together the unique experience and expertise of both
"Energy Toolbase ("ETB") grew its revenue in the first quarter of 2024 by 31% from the same period in 2023, to
"Adjusted EBITDA in the first quarter of
"Capital expenditures totaled
"Net income attributable to
"In the first quarter of 2024, we returned
"The US active land rig count has remained in a range between 595 and 695 rigs over the past 6 months and we anticipate that North American land activity will remain at current levels before slowly moving higher later in 2024 and into 2025. Our strong competitive position and compelling product and service offering in drilling data management, coupled with our leading positions in the completions and solar and energy storage markets, positions us well to post continued strong financial and operational results in the near term and generate meaningful growth over the medium to longer term" concluded
An archived audio webcast of the conference call will also be available on
A non-GAAP financial measure has the definition set out in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure".
The following non-GAAP measures may not be comparable to measures used by other companies. Management believes these non-GAAP measures provide readers with additional information regarding the Company's operating performance, and ability to generate funds to finance its operations, fund its research and development and capital expenditure program, and return capital to shareholders through dividends or share repurchases.
EBITDA is defined as net income before interest income and expense, income taxes, stock-based compensation expense, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA, adjusted for foreign exchange, impairment of property, plant, and equipment, restructuring costs, net monetary adjustments, government wage assistance, revaluation of put obligation, gain on previously held equity interest and other items, which the Company does not consider to be in the normal course of continuing operations.
Management believes that EBITDA and Adjusted EBITDA are useful supplemental measures as they provide an indication of the results generated by the Company's principal business activities prior to the consideration of how these results are taxed in multiple jurisdictions, how the results are impacted by foreign exchange or how the results are impacted by the Company's accounting policies for equity-based compensation plans.
Three Months Ended |
|
|
|
|
|
|
|
|
(000s) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
Net income |
17,992 |
33,739 |
35,994 |
35,454 |
24,962 |
27,399 |
8,012 |
69,123 |
Add: |
|
|
|
|
|
|
|
|
Income taxes |
7,189 |
11,482 |
9,405 |
12,374 |
7,906 |
7,356 |
6,710 |
9,057 |
Depreciation and amortization |
4,696 |
4,433 |
5,399 |
6,616 |
5,815 |
6,988 |
7,797 |
11,730 |
Stock-based compensation |
2,514 |
2,032 |
5,129 |
(82) |
1,986 |
5,082 |
4,732 |
3,011 |
Net interest (income) expense |
(718) |
(1,027) |
(2,679) |
(2,607) |
(2,847) |
(3,858) |
(5,082) |
(1,411) |
EBITDA |
31,673 |
50,659 |
53,248 |
51,755 |
37,822 |
42,967 |
22,169 |
91,510 |
Three Months Ended |
|
|
|
|
|
|
|
|
(000s) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
EBITDA |
31,673 |
50,659 |
53,248 |
51,755 |
37,822 |
42,967 |
22,169 |
91,510 |
Add: |
|
|
|
|
|
|
|
|
Foreign exchange (gain) loss |
(1,054) |
(3,332) |
1,959 |
233 |
1,597 |
681 |
14,247 |
714 |
Put option revaluation |
— |
— |
(5,815) |
— |
— |
— |
(149) |
— |
Net monetary loss (gain) |
268 |
(1,380) |
(536) |
(159) |
(1,196) |
(1,477) |
— |
— |
Gain on previously held equity interest |
— |
— |
— |
— |
— |
— |
— |
(50,830) |
Other |
75 |
284 |
88 |
581 |
(336) |
110 |
2,621 |
1,031 |
Adjusted EBITDA |
30,962 |
46,231 |
48,944 |
52,410 |
37,887 |
42,281 |
38,888 |
42,425 |
Free cash flow is defined as cash from operating activities plus proceeds on disposal of property, plant, and equipment, less capital expenditures (including changes to non-cash working capital associated with capital expenditures), and deferred development costs. This metric provides a key measure on the Company's ability to generate cash from its principal business activities after funding capital expenditure programs, and provides an indication of the amount of cash available to finance, among other items, the Company's dividend and other investment opportunities.
Three Months Ended |
|
|
|
|
|
|
|
|
(000s) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
Cash from operating activities |
25,679 |
30,743 |
19,942 |
46,265 |
29,658 |
31,698 |
27,412 |
31,014 |
Less: |
|
|
|
|
|
|
|
|
Net additions to property, plant and equipment |
(6,412) |
(6,590) |
(16,112) |
(11,404) |
(11,303) |
(6,474) |
(7,720) |
(17,834) |
Deferred development costs |
(132) |
(106) |
(121) |
(151) |
(367) |
(208) |
(375) |
(1,447) |
Free cash flow |
19,135 |
24,047 |
3,709 |
34,710 |
17,988 |
25,016 |
19,317 |
11,733 |
A supplementary financial measure: (a) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the
Revenue per Industry Day is defined as the total revenue generated from the North American Drilling segment over all active drilling rig days in the North American market. This metric provides a key measure of the North American Drilling segment's ability to evaluate and manage product adoption, pricing, and market share penetration. Drilling rig days are calculated by using accepted industry sources.
IWS Active Jobs represents the average number of jobs per day that IWS is generating revenue on through the rental of its technology offering to customers during the reporting period. This metric provides a key measure of IWS' market penetration.
Revenue per IWS Day is defined as the total revenue generated by the Completions segment over all IWS active days during the reporting period. IWS active days are calculated by using IWS Active Jobs in the reporting period. This metric provides a key measure of IWS' ability to evaluate and manage product adoption and pricing.
Calculated as adjusted EBITDA divided by revenue.
Calculated as the sum of cash and cash equivalents, and short-term investments from the Company's Condensed Consolidated Interim Balance Sheets. The Company's short term-investments are comprised of US dollar bonds.
Certain statements contained herein constitute "forward-looking statements" and/or "forward-looking information" under applicable securities laws (collectively referred to as "forward-looking statements"). Forward‐looking statements can generally be identified by the words "anticipate", "expect", "believe", "may", "could", "should", "will", "estimate", "project", "intend", "plan", "outlook", "forecast" or expressions of a similar nature suggesting a future outcome or outlook.
Without limiting the foregoing, this document includes, but is not limited to, the following forward‐looking statements: the Company's growth strategy and related schedules; divergence in activity levels between the geographic regions in which we operate; demand fluctuations for our products and services; the Company's ability to increase or maintain market share; projected future value, forecast operating and financial results; planned capital expenditures; expected product performance and adoption, including the timing, growth and profitability thereof; potential dividends and dividend growth strategy; future use and development of technology; our financial ability to meet long-term commitments not included in liabilities; the collectability of accounts receivable; the application of critical accounting estimates and judgements; treatment under governmental regulatory and taxation regimes; and projected increasing shareholder value.
These forward-looking statements reflect the current views of
Although we believe that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the state of the economy; volatility in industry activity levels and resulting customer expenditures on exploration and production activities; customer demand for existing and new products; the industry shift towards more efficient drilling and completions activity and technology to assist in that efficiency; the impact of competition; the loss of key customers; the loss of key personnel; cybersecurity risks; reliance on proprietary technology and ability to protect the Company's proprietary technologies; changes to government regulations (including those related to safety, environmental, or taxation); the impact of extreme weather events and seasonality on our suppliers and on customer operations; and war, terrorism, pandemics, social or political unrest that disrupts global markets.
These risks, uncertainties and assumptions include but are not limited to those discussed in
Forward-looking statements contained in this document are expressly qualified by this cautionary statement. Except to the extent required by applicable law,
Additional information on risks and uncertainties and other factors that could affect
SOURCE