Select Water Solutions Announces Second Quarter 2024 Financial Results and Operational Updates
Generated revenue of
Generated
Net income more than tripled and Adjusted EBITDA improved 17% sequentially during the second quarter of 2024 relative to the first quarter of 2024
Water Infrastructure segment revenue, gross profit and gross profit before D&A increased by 8%, 28% and 17%, respectively, in the second quarter of 2024 as compared to the first quarter of 2024
During the second quarter of 2024, closed on the acquisition of disposal assets and operations in the Northeast for
Contracted multiple new pipeline gathering, recycling & disposal infrastructure projects supported by long-term contracts in the
"Building on the sustained growth of the last few quarters, the second quarter saw strong progress in our Water Infrastructure development strategy. The Water Infrastructure segment posted 8% sequential revenue improvement and 17% growth in gross profit before D&A, resulting in another quarter of record performance for the segment. This growth led to 51% gross margins before D&A in the quarter, an increase of more than four percentage points over the first quarter of 2024 and more than 13 percentage points compared to the second quarter of last year. This also represents an early arrival at the 50% margin goal we aspired to reach by 2025 and is a tremendous achievement for the business.
"The sequential improvements in Water Infrastructure were driven by both the organic development and increased utilization of our existing infrastructure footprint, as well as the acquisitions we closed in both the first and second quarters. These acquisitions, coupled with ongoing organic infrastructure growth projects, position the segment for another quarter of growth in the third quarter. In addition to the previously announced
"In tandem with our year-to-date acquisitions, we also have executed additional organic infrastructure projects in the second quarter supported by long-term contracts. During the second quarter, we contracted more than 30,000 additional acres under long-term dedication in the
"Led by our growth in the Water Infrastructure segment, we remain confident in our ability to deliver 50% of our profitability from the Water Infrastructure and Chemical Technologies segments this year. We additionally expect to maintain our Water Infrastructure gross margins of greater than 50%, which we expect will result in another quarter of gross margin improvement for the consolidated Company and strong overall profitability that outperforms the macro environment which is expected to experience modest sequential declines. While the activity outlook has become more challenging in recent months, impacting the near-term outlook of our Water Services and Chemical Technologies segments, we expect Adjusted EBITDA to be relatively flat from the second quarter at
"I am pleased with our financial performance in the second quarter and year-to-date 2024, and I am excited to continue to build upon our infrastructure investments to date with additional wins in the remaining balance of the year, continuing the upward trajectory of one of the fastest growing infrastructure platforms in the industry. We remain steadfast in our belief that Select is distinctively positioned in the energy landscape to advance a unique integration of water and technology solutions with high-margin, long-term contracted infrastructure," concluded
Second Quarter 2024 Consolidated Financial Information
Revenue for the second quarter of 2024 was
For the second quarter of 2024, gross profit was
Selling, General & Administrative expenses ("SG&A") during the second 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 second quarter of 2024 was
Net capital expenditures for the second quarter of 2024 were
Cash flow used in investing activities during the second quarter of 2024 also included
Cash flows provided by financing activities during the second 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 two new long-term contracts for produced water gathering, recycling and disposal in the
Northern Delaware System Expansion and Acreage Dedication
During the second quarter of 2024, Select signed a long-term agreement for the construction and expansion of recycling and pipeline infrastructure for a large public operator in the
Northern Delaware Recycling Facility and Acreage Dedication
During the second quarter of 2024, Select signed a long-term agreement for the construction of recycling and pipeline infrastructure to connect a new large public operator in the
Northeast Disposal Acquisitions
During the second quarter of 2024, Select completed the acquisitions of disposal assets for
Trinity Environmental Services Acquisition
On
Conference Call
Select has scheduled a conference call on
About
Select is a leading provider of sustainable water and technology 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
Contacts:
(713) 296-1073
IR@selectwater.com
(713) 529-6600
WTTR@dennardlascar.com
SELECT WATER SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share and per share data) |
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Three months ended, |
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Six months ended |
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2024 |
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2023 |
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Revenue |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Services |
|
$ |
230,008 |
|
$ |
228,307 |
|
$ |
264,597 |
|
$ |
458,315 |
|
$ |
539,275 |
Water Infrastructure |
|
|
68,564 |
|
|
63,508 |
|
|
55,277 |
|
|
132,072 |
|
|
110,743 |
Chemical Technologies |
|
|
66,559 |
|
|
74,733 |
|
|
84,754 |
|
|
141,292 |
|
|
171,202 |
Total revenue |
|
|
365,131 |
|
|
366,548 |
|
|
404,628 |
|
|
731,679 |
|
|
821,220 |
Costs of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Services |
|
|
178,308 |
|
|
181,532 |
|
|
206,576 |
|
|
359,840 |
|
|
426,517 |
Water Infrastructure |
|
|
33,581 |
|
|
33,692 |
|
|
34,392 |
|
|
67,273 |
|
|
68,726 |
Chemical Technologies |
|
|
55,641 |
|
|
61,755 |
|
|
67,303 |
|
|
117,396 |
|
|
137,012 |
Depreciation, amortization and accretion |
|
|
37,445 |
|
|
36,892 |
|
|
35,183 |
|
|
74,337 |
|
|
68,126 |
Total costs of revenue |
|
|
304,975 |
|
|
313,871 |
|
|
343,454 |
|
|
618,846 |
|
|
700,381 |
Gross profit |
|
|
60,156 |
|
|
52,677 |
|
|
61,174 |
|
|
112,833 |
|
|
120,839 |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
38,981 |
|
|
43,980 |
|
|
34,335 |
|
|
82,961 |
|
|
70,164 |
Depreciation and amortization |
|
|
748 |
|
|
1,258 |
|
|
739 |
|
|
2,006 |
|
|
1,334 |
Impairments and abandonments |
|
|
46 |
|
|
45 |
|
|
356 |
|
|
91 |
|
|
11,522 |
Lease abandonment costs |
|
|
17 |
|
|
389 |
|
|
9 |
|
|
406 |
|
|
85 |
Total operating expenses |
|
|
39,792 |
|
|
45,672 |
|
|
35,439 |
|
|
85,464 |
|
|
83,105 |
Income from operations |
|
|
20,364 |
|
|
7,005 |
|
|
25,735 |
|
|
27,369 |
|
|
37,734 |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sales of property and equipment and divestitures, net |
|
|
382 |
|
|
325 |
|
|
(1,246) |
|
|
707 |
|
|
1,665 |
Interest expense, net |
|
|
(2,026) |
|
|
(1,272) |
|
|
(2,042) |
|
|
(3,298) |
|
|
(3,525) |
Other |
|
|
42 |
|
|
(282) |
|
|
873 |
|
|
(240) |
|
|
1,715 |
Income before income tax expense and equity in gains (losses) of unconsolidated entities |
|
|
18,762 |
|
|
5,776 |
|
|
23,320 |
|
|
24,538 |
|
|
37,589 |
Income tax expense |
|
|
(3,959) |
|
|
(1,452) |
|
|
(387) |
|
|
(5,411) |
|
|
(585) |
Equity in gains (losses) of unconsolidated entities |
|
|
96 |
|
|
(449) |
|
|
(372) |
|
|
(353) |
|
|
(738) |
Net income |
|
|
14,899 |
|
|
3,875 |
|
|
22,561 |
|
|
18,774 |
|
|
36,266 |
Less: net income attributable to noncontrolling interests |
|
|
(2,031) |
|
|
(250) |
|
|
(2,446) |
|
|
(2,281) |
|
|
(3,804) |
Net income attributable to Select Water Solutions, Inc. |
|
$ |
12,868 |
|
$ |
3,625 |
|
$ |
20,115 |
|
$ |
16,493 |
|
$ |
32,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A—Basic |
|
$ |
0.13 |
|
$ |
0.04 |
|
$ |
0.20 |
|
$ |
0.17 |
|
$ |
0.31 |
Class B—Basic |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A—Diluted |
|
$ |
0.13 |
|
$ |
0.04 |
|
$ |
0.20 |
|
$ |
0.16 |
|
$ |
0.31 |
Class B—Diluted |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
SELECT WATER SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share data) |
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Assets |
|
|
|
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Current assets |
|
|
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|
|
Cash and cash equivalents |
|
$ |
16,417 |
|
$ |
12,753 |
|
$ |
57,083 |
Accounts receivable trade, net of allowance for credit losses |
|
|
295,115 |
|
|
323,113 |
|
|
322,611 |
Accounts receivable, related parties |
|
|
98 |
|
|
330 |
|
|
171 |
Inventories |
|
|
37,501 |
|
|
37,636 |
|
|
38,653 |
Prepaid expenses and other current assets |
|
|
35,142 |
|
|
37,886 |
|
|
35,541 |
Total current assets |
|
|
384,273 |
|
|
411,718 |
|
|
454,059 |
Property and equipment |
|
|
1,312,239 |
|
|
1,242,133 |
|
|
1,144,989 |
Accumulated depreciation |
|
|
(663,284) |
|
|
(650,952) |
|
|
(627,408) |
Total property and equipment, net |
|
|
648,955 |
|
|
591,181 |
|
|
517,581 |
Right-of-use assets, net |
|
|
42,293 |
|
|
42,931 |
|
|
39,504 |
|
|
|
36,664 |
|
|
31,202 |
|
|
4,683 |
Other intangible assets, net |
|
|
126,834 |
|
|
127,649 |
|
|
116,189 |
Deferred tax assets, net |
|
|
54,529 |
|
|
60,489 |
|
|
61,617 |
Other long-term assets |
|
|
29,572 |
|
|
26,137 |
|
|
24,557 |
Total assets |
|
$ |
1,323,120 |
|
$ |
1,291,307 |
|
$ |
1,218,190 |
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
36,746 |
|
$ |
54,389 |
|
$ |
42,582 |
Accrued accounts payable |
|
|
72,493 |
|
|
62,833 |
|
|
66,182 |
Accounts payable and accrued expenses, related parties |
|
|
3,251 |
|
|
4,227 |
|
|
4,086 |
Accrued salaries and benefits |
|
|
24,342 |
|
|
17,692 |
|
|
28,401 |
Accrued insurance |
|
|
17,399 |
|
|
17,227 |
|
|
19,720 |
Sales tax payable |
|
|
2,493 |
|
|
2,973 |
|
|
1,397 |
Current portion of tax receivable agreements liabilities |
|
|
469 |
|
|
469 |
|
|
469 |
Accrued expenses and other current liabilities |
|
|
38,282 |
|
|
35,800 |
|
|
33,511 |
Current operating lease liabilities |
|
|
16,934 |
|
|
16,241 |
|
|
15,005 |
Current portion of finance lease obligations |
|
|
199 |
|
|
196 |
|
|
194 |
Total current liabilities |
|
|
212,608 |
|
|
212,047 |
|
|
211,547 |
Long-term tax receivable agreements liabilities |
|
|
37,718 |
|
|
37,718 |
|
|
37,718 |
Long-term operating lease liabilities |
|
|
37,938 |
|
|
39,667 |
|
|
37,799 |
Long-term debt |
|
|
90,000 |
|
|
75,000 |
|
|
— |
Other long-term liabilities |
|
|
42,726 |
|
|
38,554 |
|
|
38,954 |
Total liabilities |
|
|
420,990 |
|
|
402,986 |
|
|
326,018 |
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Class A common stock, |
|
|
1,028 |
|
|
1,027 |
|
|
1,022 |
Class B common stock, |
|
|
162 |
|
|
162 |
|
|
162 |
Preferred stock, |
|
|
— |
|
|
— |
|
|
— |
Additional paid-in capital |
|
|
1,001,123 |
|
|
1,001,967 |
|
|
1,088,095 |
Accumulated deficit |
|
|
(220,298) |
|
|
(233,166) |
|
|
(236,791) |
Total stockholders' equity |
|
|
782,015 |
|
|
769,990 |
|
|
772,488 |
Noncontrolling interests |
|
|
120,115 |
|
|
118,331 |
|
|
119,684 |
Total equity |
|
|
902,130 |
|
|
888,321 |
|
|
892,172 |
Total liabilities and equity |
|
$ |
1,323,120 |
|
$ |
1,291,307 |
|
$ |
1,218,190 |
SELECT WATER SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
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Three months ended |
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Six months ended |
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Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
14,899 |
|
$ |
3,875 |
|
$ |
22,561 |
|
$ |
18,774 |
|
$ |
36,266 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion |
|
|
38,193 |
|
|
38,150 |
|
|
35,922 |
|
|
76,343 |
|
|
69,460 |
|
Deferred tax expense (benefit) |
|
|
3,792 |
|
|
1,129 |
|
|
(37) |
|
|
4,921 |
|
|
(43) |
|
(Gain) loss on disposal of property and equipment and divestitures |
|
|
(382) |
|
|
(325) |
|
|
1,246 |
|
|
(707) |
|
|
(1,665) |
|
Equity in (gains) losses of unconsolidated entities |
|
|
(96) |
|
|
449 |
|
|
372 |
|
|
353 |
|
|
738 |
|
Bad debt expense |
|
|
731 |
|
|
596 |
|
|
856 |
|
|
1,327 |
|
|
2,831 |
|
Amortization of debt issuance costs |
|
|
122 |
|
|
122 |
|
|
122 |
|
|
244 |
|
|
244 |
|
Inventory adjustments |
|
|
(400) |
|
|
(33) |
|
|
367 |
|
|
(433) |
|
|
442 |
|
Equity-based compensation |
|
|
6,201 |
|
|
6,359 |
|
|
4,809 |
|
|
12,560 |
|
|
7,773 |
|
Impairments and abandonments |
|
|
46 |
|
|
45 |
|
|
356 |
|
|
91 |
|
|
11,522 |
|
Other operating items, net |
|
|
655 |
|
|
312 |
|
|
(425) |
|
|
967 |
|
|
(643) |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
31,298 |
|
|
128 |
|
|
61,308 |
|
|
31,426 |
|
|
(3,614) |
|
Prepaid expenses and other assets |
|
|
1,222 |
|
|
(2,180) |
|
|
(1,753) |
|
|
(958) |
|
|
(7,184) |
|
Accounts payable and accrued liabilities |
|
|
(13,167) |
|
|
(16,498) |
|
|
(23,739) |
|
|
(29,665) |
|
|
(32,178) |
|
Net cash provided by operating activities |
|
|
83,114 |
|
|
32,129 |
|
|
101,965 |
|
|
115,243 |
|
|
83,949 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(49,113) |
|
|
(33,763) |
|
|
(39,350) |
|
|
(82,876) |
|
|
(67,235) |
|
Purchase of equity-method investments |
|
|
— |
|
|
— |
|
|
(500) |
|
|
— |
|
|
(500) |
|
Acquisitions, net of cash received |
|
|
(41,477) |
|
|
(108,311) |
|
|
(4,000) |
|
|
(149,788) |
|
|
(13,418) |
|
Proceeds received from sales of property and equipment |
|
|
3,379 |
|
|
5,166 |
|
|
3,077 |
|
|
8,545 |
|
|
9,801 |
|
Net cash used in investing activities |
|
|
(87,211) |
|
|
(136,908) |
|
|
(40,773) |
|
|
(224,119) |
|
|
(71,352) |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings from revolving line of credit |
|
|
52,500 |
|
|
90,000 |
|
|
28,500 |
|
|
142,500 |
|
|
105,250 |
|
Payments on revolving line of credit |
|
|
(37,500) |
|
|
(15,000) |
|
|
(39,000) |
|
|
(52,500) |
|
|
(56,250) |
|
Payments of finance lease obligations |
|
|
(48) |
|
|
(66) |
|
|
(5) |
|
|
(114) |
|
|
(10) |
|
Dividends and distributions paid |
|
|
(7,034) |
|
|
(7,487) |
|
|
(5,880) |
|
|
(14,521) |
|
|
(12,086) |
|
Distributions to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(1,581) |
|
|
— |
|
|
(1,581) |
|
Contributions from noncontrolling interests |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,950 |
|
Repurchase of common stock |
|
|
(156) |
|
|
(6,996) |
|
|
(38,694) |
|
|
(7,152) |
|
|
(49,629) |
|
Net cash provided by (used in) financing activities |
|
|
7,762 |
|
|
60,451 |
|
|
(56,660) |
|
|
68,213 |
|
|
(9,356) |
|
Effect of exchange rate changes on cash |
|
|
(1) |
|
|
(2) |
|
|
2 |
|
|
(3) |
|
|
(1) |
|
Net increase (decrease) in cash and cash equivalents |
|
|
3,664 |
|
|
(44,330) |
|
|
4,534 |
|
|
(40,666) |
|
|
3,240 |
|
Cash and cash equivalents, beginning of period |
|
|
12,753 |
|
|
57,083 |
|
|
6,028 |
|
|
57,083 |
|
|
7,322 |
|
Cash and cash equivalents, end of period |
|
$ |
16,417 |
|
$ |
12,753 |
|
$ |
10,562 |
|
$ |
16,417 |
|
$ |
10,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
For forward-looking non-GAAP measures, the Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measure as the information necessary for a quantitative reconciliation, including potential acquisition-related transaction and rebranding costs as well as the purchase price accounting allocation of the recent acquisitions and the resulting impacts to depreciation, amortization and accretion expense, among other items is not available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy at this time.
The following table presents a reconciliation of free cash flow to net cash provided by operating activities, which is the most directly comparable GAAP measure for the periods presented:
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Three months ended |
||||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
(unaudited) (in thousands) |
||||||
Net cash provided by operating activities |
|
$ |
83,114 |
|
$ |
32,129 |
|
$ |
101,965 |
||
Purchase of property and equipment |
|
|
(49,113) |
|
|
(33,763) |
|
|
(39,350) |
||
Proceeds received from sale of property and equipment |
|
|
3,379 |
|
|
5,166 |
|
|
3,077 |
||
Free cash flow |
|
$ |
37,380 |
|
$ |
3,532 |
|
$ |
65,692 |
||
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
14,899 |
|
$ |
3,875 |
|
$ |
22,651 |
Interest expense, net |
|
|
|
2,026 |
|
|
1,272 |
|
|
2,042 |
Income tax expense |
|
|
|
3,959 |
|
|
1,452 |
|
|
387 |
Depreciation, amortization and accretion |
|
|
|
38,193 |
|
|
38,150 |
|
|
35,922 |
EBITDA |
|
|
|
59,077 |
|
|
44,749 |
|
|
60,912 |
Trademark abandonment and other impairments |
|
|
|
46 |
|
|
45 |
|
|
356 |
Non-cash loss on sale of assets or subsidiaries |
|
|
|
1,432 |
|
|
1,748 |
|
|
1,426 |
Non-cash compensation expenses |
|
|
|
6,201 |
|
|
6,359 |
|
|
4,809 |
Non-recurring transaction and rebranding costs |
|
|
|
2,866 |
|
|
4,929 |
|
|
1,963 |
Non-recurring severance expense |
|
|
|
— |
|
|
648 |
|
|
— |
Lease abandonment costs |
|
|
|
17 |
|
|
389 |
|
|
9 |
Equity in (gains) losses of unconsolidated entities |
|
|
|
(96) |
|
|
449 |
|
|
372 |
Other |
|
|
|
104 |
|
|
442 |
|
|
(1) |
Adjusted EBITDA |
|
|
$ |
69,647 |
|
$ |
59,758 |
|
$ |
69,846 |
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 |
|
$ |
30,688 |
|
$ |
25,661 |
|
$ |
34,881 |
Water infrastructure |
|
|
20,354 |
|
|
15,915 |
|
|
11,512 |
Chemical technologies |
|
|
9,114 |
|
|
11,101 |
|
|
14,782 |
As reported gross profit |
|
|
60,156 |
|
|
52,677 |
|
|
61,175 |
|
|
|
|
|
|
|
|
|
|
Plus D&A |
|
|
|
|
|
|
|
|
|
Water services |
|
|
21,012 |
|
|
21,114 |
|
|
23,140 |
Water infrastructure |
|
|
14,629 |
|
|
13,901 |
|
|
9,373 |
Chemical technologies |
|
|
1,804 |
|
|
1,877 |
|
|
2,669 |
Total D&A |
|
|
37,445 |
|
|
36,892 |
|
|
35,182 |
|
|
|
|
|
|
|
|
|
|
Gross profit before D&A |
|
$ |
97,601 |
|
$ |
89,569 |
|
$ |
96,357 |
|
|
|
|
|
|
|
|
|
|
Gross profit before D&A by segment |
|
|
|
|
|
|
|
|
|
Water services |
|
|
51,700 |
|
|
46,775 |
|
|
58,021 |
Water infrastructure |
|
|
34,983 |
|
|
29,816 |
|
|
20,885 |
Chemical technologies |
|
|
10,918 |
|
|
12,978 |
|
|
17,451 |
Total gross profit before D&A |
|
$ |
97,601 |
|
$ |
89,569 |
|
$ |
96,357 |
|
|
|
|
|
|
|
|
|
|
Gross margin before D&A by segment |
|
|
|
|
|
|
|
|
|
Water services |
|
|
22.5 % |
|
|
20.5 % |
|
|
21.9 % |
Water infrastructure |
|
|
51.0 % |
|
|
46.9 % |
|
|
37.8 % |
Chemical technologies |
|
|
16.4 % |
|
|
17.4 % |
|
|
20.6 % |
Total gross margin before D&A |
|
|
26.7 % |
|
|
24.4 % |
|
|
23.8 % |
View original content:https://www.prnewswire.com/news-releases/select-water-solutions-announces-second-quarter-2024-financial-results-and-operational-updates-302210272.html
SOURCE