Kodiak Gas Services Reports Second Quarter 2025 Financial Results, Announces $100 Million Increase to Share Repurchase Program and Provides Updated Full Year 2025 Guidance
Net income attributable to common shareholders for the quarter ended
Second Quarter 2025 and Recent Highlights
-
Record earnings per share attributable to common shareholders of
$0.43 per diluted share -
Record quarterly adjusted EBITDA(1) of
$178.2 million , a 15.5% increase compared to second quarter 2024 - Contract Services adjusted gross margin percentage(1) increased to 68.3%, a 430 basis point increase compared to second quarter 2024
-
Generated record quarterly free cash flow(1) of
$70.3 million -
Returned over
$50 million to stockholders through dividends and share repurchases - Deployed 31,800 horsepower of new, large horsepower compression units
- Fleet utilization increased to 97.2%, a 290 basis point increase compared to second quarter 2024
-
Added to the S&P SmallCap 600 index effective
August 6, 2025
Revised 2025 Outlook Highlights
-
Raised full-year 2025 adjusted EBITDA guidance to a range of
$700 to$725 million , a$5 million increase to the low end of the range -
Increased full-year 2025 discretionary cash flow(1) guidance to a range of
$445 to$465 million
(1) |
Adjusted EBITDA, adjusted gross margin percentage, free cash flow and discretionary cash flow are non-GAAP financial measures. Definitions and reconciliations to the most comparable GAAP financial measure are included herein. |
"Kodiak's performance in the second quarter reflects our commitment to operational excellence and the strong fundamentals for contract gas compression,” said
“Despite the challenges posed by global economic instabilities and energy market dynamics, our production-focused business model remains robust. The resilience of our operations is evident in our ability to maintain high fleet utilization and increase margins. As we look ahead, the highly visible
"The meaningful increase in our share repurchase program reflects that confidence and underscores Kodiak's commitment to returning capital to shareholders. Our focus remains on delivering superior service and maintaining one of the safest and most reliable compression fleets in the industry. Kodiak is well-positioned to capitalize on future opportunities, continue to drive profitable growth and increase shareholder value."
Segment Information
Contract Services segment revenue was
Other Services segment revenue was
Long-Term Debt and Liquidity
During the second quarter 2025, the Company reduced debt outstanding by approximately
S&P SmallCap 600
Share Repurchase Program
The Company's Board of Directors approved a
Repurchases under the share repurchase program may be made from time to time through open market repurchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors.
To date, the Company has repurchased approximately 2.0 million shares for an aggregate amount of
Summary Financial Data |
||||||||||||
|
|
Three Months Ended |
||||||||||
(in thousands, excluding percentages) |
|
|
|
|
|
|
||||||
Total revenues |
|
$ |
322,843 |
|
|
$ |
329,642 |
|
|
$ |
309,653 |
|
Net income attributable to common shareholders |
|
$ |
39,496 |
|
|
$ |
30,411 |
|
|
$ |
6,228 |
|
Adjusted EBITDA (1) |
|
$ |
178,216 |
|
|
$ |
177,664 |
|
|
$ |
154,342 |
|
Adjusted EBITDA percentage (1) |
|
|
55.2 |
% |
|
|
53.9 |
% |
|
|
49.8 |
% |
|
|
|
|
|
|
|
||||||
Contract Services revenue |
|
$ |
293,534 |
|
|
$ |
288,956 |
|
|
$ |
276,250 |
|
Contract Services adjusted gross margin (1) |
|
$ |
200,397 |
|
|
$ |
195,721 |
|
|
$ |
176,917 |
|
Contract Services adjusted gross margin percentage (1) |
|
|
68.3 |
% |
|
|
67.7 |
% |
|
|
64.0 |
% |
|
|
|
|
|
|
|
||||||
Other Services revenue |
|
$ |
29,309 |
|
|
$ |
40,686 |
|
|
$ |
33,403 |
|
Other Services adjusted gross margin (1) |
|
$ |
7,195 |
|
|
$ |
5,460 |
|
|
$ |
5,467 |
|
Other Services adjusted gross margin percentage (1) |
|
|
24.5 |
% |
|
|
13.4 |
% |
|
|
16.4 |
% |
|
|
|
|
|
|
|
||||||
Maintenance capital expenditures |
|
$ |
17,565 |
|
|
$ |
16,407 |
|
|
$ |
19,147 |
|
|
|
|
|
|
|
|
||||||
Growth capital expenditures (2) |
|
$ |
37,966 |
|
|
$ |
55,983 |
|
|
$ |
77,257 |
|
Other capital expenditures (3) |
|
|
16,398 |
|
|
|
22,258 |
|
|
|
13,133 |
|
Total Growth and Other capital expenditures |
|
$ |
54,364 |
|
|
$ |
78,241 |
|
|
$ |
90,390 |
|
|
|
|
|
|
|
|
||||||
Discretionary cash flow (1) |
|
$ |
116,424 |
|
|
$ |
116,084 |
|
|
$ |
90,617 |
|
Free cash flow (1) |
|
$ |
70,290 |
|
|
$ |
47,219 |
|
|
$ |
638 |
|
(1) |
Adjusted EBITDA, adjusted EBITDA percentage, adjusted gross margin, adjusted gross margin percentage, discretionary cash flow and free cash flow are non-GAAP financial measures. For definitions and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below. |
(2) |
Growth capital expenditures made to (1) expand the operating capacity or operating income capacity of assets including, but not limited to, the acquisition of additional compression units, upgrades to existing equipment, expansion of supporting infrastructure, and implementation of new technologies, (2) maintain the operating capacity or operating income capacity of assets by acquisition of replacement compression units and their supporting infrastructure, and (3) expand the operating capacity or operating income capacity of existing assets. |
(3) |
Other capital expenditures made on assets required to support our operations—such as rolling stock, leasehold improvements, technology hardware and software and related implementation expenditures, safety enhancements to equipment, and other general items that are typically capitalized and that have a useful life beyond one year. Other capital expenditures were previously included in growth capital expenditures, but are now shown separately for both current and historical periods. |
Summary Operating Data |
|||||||||
(as of the dates indicated) |
|||||||||
|
|
|
|
|
|
|
|||
Fleet horsepower (1) |
|
4,419,884 |
|
|
4,422,914 |
|
|
4,481,900 |
|
Revenue-generating horsepower (2) |
|
4,296,978 |
|
|
4,284,103 |
|
|
4,224,839 |
|
Fleet compression units |
|
4,881 |
|
|
4,941 |
|
|
7,317 |
|
Revenue-generating compression units |
|
4,514 |
|
|
4,545 |
|
|
5,753 |
|
Revenue-generating horsepower per revenue-generating compression unit (3) |
|
952 |
|
|
943 |
|
|
734 |
|
Fleet utilization (4) |
|
97.2 |
% |
|
96.9 |
% |
|
94.3 |
% |
(1) |
Fleet horsepower includes (x) revenue-generating horsepower and (y) idle horsepower, which is comprised of compression units that do not have a signed contract or are not subject to a firm commitment from our customer and therefore are not currently generating revenue. |
(2) |
Revenue-generating horsepower includes compression units that are operating under contract and generating revenue and compression units which are available to be deployed and for which we have a signed contract or are subject to a firm commitment from our customer. |
(3) |
Calculated as (i) revenue-generating horsepower divided by (ii) revenue-generating compression units at period end. |
(4) |
Fleet utilization is calculated as (i) revenue-generating horsepower divided by (ii) fleet horsepower. |
Full-Year 2025 Guidance |
||||||||
Kodiak is providing revised guidance for the full year 2025. |
||||||||
|
|
Full-Year 2025 Guidance |
||||||
(in thousands, excluding percentages) |
|
Low |
|
High |
||||
Adjusted EBITDA (1) |
|
$ |
700,000 |
|
|
$ |
725,000 |
|
Discretionary cash flow (1)(2) |
|
$ |
445,000 |
|
|
$ |
465,000 |
|
|
|
|
|
|
||||
Segment Information |
|
|
|
|
||||
Contract Services revenues |
|
$ |
1,160,000 |
|
|
$ |
1,200,000 |
|
Contract Services adjusted gross margin percentage (1) |
|
|
67.0 |
% |
|
|
69.0 |
% |
Other Services revenues |
|
$ |
120,000 |
|
|
$ |
140,000 |
|
Other Services adjusted gross margin percentage (1) |
|
|
14.0 |
% |
|
|
17.0 |
% |
|
|
|
|
|
||||
Capital Expenditures |
|
|
|
|
||||
Maintenance capital expenditures |
|
$ |
75,000 |
|
|
$ |
85,000 |
|
|
|
|
|
|
||||
Growth capital expenditures |
|
$ |
180,000 |
|
|
$ |
205,000 |
|
Other capital expenditures |
|
|
60,000 |
|
|
|
65,000 |
|
Total Growth and Other capital expenditures |
|
$ |
240,000 |
|
|
$ |
270,000 |
|
(1) |
The Company is unable to reconcile projected adjusted EBITDA to projected net income (loss) and discretionary cash flow to projected net cash provided by operating activities and projected adjusted gross margin percentage to projected gross margin percentage, the most comparable financial measures calculated in accordance with GAAP, respectively, without unreasonable efforts because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. |
(2) |
Discretionary cash flow guidance assumes no change to Secured Overnight Financing Rate futures. |
Conference Call
Kodiak will conduct a conference call on
About Kodiak
Kodiak is a leading contract compression services provider in
Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income (loss) before interest expense; income tax expense; and depreciation and amortization; plus (i) loss on extinguishment of debt; (ii) loss (gain) on derivatives; (iii) equity compensation expense; (iv) severance expenses; (v) transaction expenses; (vi) loss (gain) on sale of assets; and (vii) impairment of compression equipment. Adjusted EBITDA percentage is defined as adjusted EBITDA divided by total revenues. Adjusted EBITDA and adjusted EBITDA percentage are used as supplemental financial measures by our management and external users of our financial statements, such as investors, commercial banks and other financial institutions, to assess: (i) the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; (ii) the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; (iii) the ability of our assets to generate cash sufficient to make debt payments and pay dividends; and (iv) our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods and capital structure. We believe adjusted EBITDA and adjusted EBITDA percentage provide useful information because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our business. Reconciliations of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, and net cash provided by operating activities are presented below.
Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Adjusted gross margin percentage is defined as adjusted gross margin divided by total revenues. We believe adjusted gross margin and adjusted gross margin percentage are useful as supplemental measures to investors of our operating profitability. Reconciliations of adjusted gross margin to gross margin are presented below.
Discretionary cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; and (iii) certain other expenses; plus (w) cash loss on extinguishment of debt; (x) severance expenses; and (y) transaction expenses. We believe discretionary cash flow is a useful liquidity and performance measure and supplemental financial measure for us in assessing our ability to pay cash dividends to our stockholders, make growth capital expenditures and assess our operating performance. A reconciliation of discretionary cash flow to net cash provided by operating activities is presented below.
Free cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; (iii) certain other expenses; and (iv) growth and other capital expenditures; plus (w) cash loss on extinguishment of debt; (x) severance expenses; (y) transaction expenses; and (z) proceeds from sale of assets. We believe free cash flow is a liquidity measure and useful supplemental financial measure for us in assessing our ability to pursue business opportunities and investments to grow our business and to service our debt. A reconciliation of free cash flow to net cash provided by operating activities is presented below.
Cautionary Note Regarding Forward-Looking Statements
This news release contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) a reduction in the demand for natural gas and oil and/or a decrease in natural gas and oil prices; (ii) the loss of, or the deterioration of the financial condition of, any of our key customers; (iii) nonpayment and nonperformance by our customers, suppliers or vendors; (iv) competitive pressures that may cause us to lose market share; (v) the structure of our Contract Services contracts and the failure of our customers to continue to contract for services after expiration of the primary term; (vi) our ability to successfully integrate any acquired businesses, including
Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.
|
||||||||||||
|
|
Three Months Ended |
||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
||||||
Revenues: |
|
|
|
|
|
|
||||||
Contract Services |
|
$ |
293,534 |
|
|
$ |
288,956 |
|
|
$ |
276,250 |
|
Other Services |
|
|
29,309 |
|
|
|
40,686 |
|
|
|
33,403 |
|
Total revenues |
|
|
322,843 |
|
|
|
329,642 |
|
|
|
309,653 |
|
Operating expenses: |
|
|
|
|
|
|
||||||
Cost of operations (exclusive of depreciation and amortization shown below): |
|
|
|
|
|
|
||||||
Contract Services |
|
|
93,137 |
|
|
|
93,235 |
|
|
|
99,333 |
|
Other Services |
|
|
22,114 |
|
|
|
35,226 |
|
|
|
27,936 |
|
Depreciation and amortization |
|
|
66,135 |
|
|
|
70,529 |
|
|
|
69,463 |
|
Selling, general and administrative |
|
|
35,121 |
|
|
|
32,255 |
|
|
|
59,927 |
|
Loss (gain) on sale of assets |
|
|
6,606 |
|
|
|
9,211 |
|
|
|
(1,173 |
) |
Total operating expenses |
|
|
223,113 |
|
|
|
240,456 |
|
|
|
255,486 |
|
Income from operations |
|
|
99,730 |
|
|
|
89,186 |
|
|
|
54,167 |
|
Other income (expenses): |
|
|
|
|
|
|
||||||
Interest expense |
|
|
(45,755 |
) |
|
|
(47,224 |
) |
|
|
(52,133 |
) |
Gain on derivatives |
|
|
— |
|
|
|
— |
|
|
|
6,797 |
|
Other income (expense), net |
|
|
(546 |
) |
|
|
(402 |
) |
|
|
218 |
|
Total other expenses, net |
|
|
(46,301 |
) |
|
|
(47,626 |
) |
|
|
(45,118 |
) |
Income before income taxes |
|
|
53,429 |
|
|
|
41,560 |
|
|
|
9,049 |
|
Income tax expense |
|
|
13,445 |
|
|
|
10,524 |
|
|
|
2,336 |
|
Net income |
|
|
39,984 |
|
|
|
31,036 |
|
|
|
6,713 |
|
Less: Net income attributable to noncontrolling interests |
|
|
488 |
|
|
|
625 |
|
|
|
485 |
|
Net income attributable to common shareholders |
|
$ |
39,496 |
|
|
$ |
30,411 |
|
|
$ |
6,228 |
|
|
|
|
|
|
|
|
||||||
Earnings per share attributable to common shareholders: |
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.44 |
|
|
$ |
0.34 |
|
|
$ |
0.07 |
|
Diluted |
|
$ |
0.43 |
|
|
$ |
0.33 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
||||||
Basic |
|
|
87,699 |
|
|
|
87,879 |
|
|
|
84,202 |
|
Diluted |
|
|
90,040 |
|
|
|
90,606 |
|
|
|
90,669 |
|
|
||||||||
(in thousands) |
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
5,428 |
|
|
$ |
4,750 |
|
Accounts receivable, net |
|
|
224,656 |
|
|
|
253,637 |
|
Inventories, net |
|
|
101,004 |
|
|
|
103,341 |
|
Fair value of derivative instruments |
|
|
— |
|
|
|
3,672 |
|
Contract assets |
|
|
5,274 |
|
|
|
7,575 |
|
Prepaid expenses and other current assets |
|
|
9,163 |
|
|
|
10,686 |
|
Total current assets |
|
|
345,525 |
|
|
|
383,661 |
|
Property, plant and equipment, net |
|
|
3,392,339 |
|
|
|
3,395,022 |
|
Operating lease right-of-use assets, net |
|
|
47,866 |
|
|
|
53,754 |
|
Finance lease right-of-use assets, net |
|
|
7,574 |
|
|
|
5,696 |
|
|
|
|
415,213 |
|
|
|
415,213 |
|
Identifiable intangible assets, net |
|
|
158,999 |
|
|
|
162,747 |
|
Fair value of derivative instruments |
|
|
6,978 |
|
|
|
17,544 |
|
Other assets |
|
|
1,433 |
|
|
|
1,486 |
|
Total assets |
|
$ |
4,375,927 |
|
|
$ |
4,435,123 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
50,385 |
|
|
$ |
57,562 |
|
Accrued liabilities |
|
|
178,541 |
|
|
|
188,732 |
|
Contract liabilities |
|
|
84,392 |
|
|
|
73,075 |
|
Total current liabilities |
|
|
313,318 |
|
|
|
319,369 |
|
Long-term debt, net of unamortized debt issuance cost |
|
|
2,545,019 |
|
|
|
2,581,909 |
|
Operating lease liabilities |
|
|
43,735 |
|
|
|
49,748 |
|
Finance lease liabilities |
|
|
5,394 |
|
|
|
3,514 |
|
Deferred tax liabilities |
|
|
118,087 |
|
|
|
103,826 |
|
Other liabilities |
|
|
1,908 |
|
|
|
3,150 |
|
Total liabilities |
|
$ |
3,027,461 |
|
|
$ |
3,061,516 |
|
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock |
|
|
8 |
|
|
|
9 |
|
Common stock |
|
|
895 |
|
|
|
892 |
|
Additional paid-in capital |
|
|
1,317,475 |
|
|
|
1,305,375 |
|
|
|
|
(59,956 |
) |
|
|
(40,000 |
) |
Noncontrolling interest |
|
|
12,347 |
|
|
|
13,694 |
|
Accumulated other comprehensive loss |
|
|
(8,316 |
) |
|
|
— |
|
Retained earnings |
|
|
86,013 |
|
|
|
93,637 |
|
Total stockholders’ equity |
|
|
1,348,466 |
|
|
|
1,373,607 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,375,927 |
|
|
$ |
4,435,123 |
|
|
|||||||
|
Six Months Ended |
||||||
(in thousands) |
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
71,020 |
|
|
$ |
36,945 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
136,664 |
|
|
|
116,407 |
|
Equity compensation expense |
|
13,269 |
|
|
|
8,159 |
|
Amortization of debt issuance costs |
|
6,267 |
|
|
|
4,946 |
|
Non-cash lease expense |
|
6,265 |
|
|
|
1,648 |
|
Provision for credit losses |
|
995 |
|
|
|
4,589 |
|
Inventory reserve |
|
123 |
|
|
|
476 |
|
Loss (gain) on sale of assets |
|
15,817 |
|
|
|
(1,173 |
) |
Change in fair value of derivatives |
|
— |
|
|
|
(14,293 |
) |
Amortization of interest rate swap |
|
4,147 |
|
|
|
— |
|
Deferred tax provision |
|
17,134 |
|
|
|
7,104 |
|
Changes in operating assets and liabilities, exclusive of effects of business acquisition: |
|
|
|
||||
Accounts receivable |
|
27,986 |
|
|
|
(45,933 |
) |
Inventories |
|
2,214 |
|
|
|
(3,147 |
) |
Contract assets |
|
2,301 |
|
|
|
12,000 |
|
Prepaid expenses and other current assets |
|
1,380 |
|
|
|
4,671 |
|
Accounts payable |
|
(13,162 |
) |
|
|
21,983 |
|
Accrued and other liabilities |
|
(13,334 |
) |
|
|
11,871 |
|
Contract liabilities |
|
11,317 |
|
|
|
6,308 |
|
Other assets |
|
1,097 |
|
|
|
63 |
|
Net cash provided by operating activities |
|
291,500 |
|
|
|
172,624 |
|
Cash flows from investing activities: |
|
|
|
||||
Net cash acquired in acquisition of |
|
— |
|
|
|
9,458 |
|
Purchase of property, plant and equipment |
|
(160,171 |
) |
|
|
(177,186 |
) |
Proceeds from sale of assets |
|
17,606 |
|
|
|
411 |
|
Other |
|
— |
|
|
|
(35 |
) |
Net cash used for investing activities |
|
(142,565 |
) |
|
|
(167,352 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings on debt instruments |
|
686,921 |
|
|
|
1,945,775 |
|
Payments on debt instruments |
|
(730,078 |
) |
|
|
(1,867,851 |
) |
Principal payments on other borrowings |
|
(3,455 |
) |
|
|
(1,843 |
) |
Payment of debt issuance cost |
|
— |
|
|
|
(16,346 |
) |
Principal payments on finance leases |
|
(1,540 |
) |
|
|
(408 |
) |
Offering costs |
|
— |
|
|
|
(1,162 |
) |
Dividends paid to stockholders |
|
(76,593 |
) |
|
|
(62,393 |
) |
Repurchase of common shares |
|
(19,956 |
) |
|
|
— |
|
Cash paid for shares withheld to cover taxes |
|
(3,286 |
) |
|
|
(294 |
) |
Net effect on deferred taxes and taxes payable related to the vesting of restricted stock |
|
424 |
|
|
|
— |
|
Distributions to noncontrolling interest |
|
(694 |
) |
|
|
(2,460 |
) |
Net cash used for financing activities |
|
(148,257 |
) |
|
|
(6,982 |
) |
Net increase (decrease) in cash and cash equivalents |
|
678 |
|
|
|
(1,710 |
) |
Cash and cash equivalents - beginning of period |
|
4,750 |
|
|
|
5,562 |
|
Cash and cash equivalents - end of period |
$ |
5,428 |
|
|
$ |
3,852 |
|
|
||||||||||||
|
|
Three Months Ended |
||||||||||
(in thousands, excluding percentages) |
|
|
|
|
|
|
||||||
Net income |
|
$ |
39,984 |
|
|
$ |
31,036 |
|
|
$ |
6,713 |
|
Interest expense |
|
|
45,755 |
|
|
|
47,224 |
|
|
|
52,133 |
|
Income tax expense |
|
|
13,445 |
|
|
|
10,524 |
|
|
|
2,336 |
|
Depreciation and amortization |
|
|
66,135 |
|
|
|
70,529 |
|
|
|
69,463 |
|
Gain on derivatives |
|
|
— |
|
|
|
— |
|
|
|
(6,797 |
) |
Equity compensation expense |
|
|
6,291 |
|
|
|
6,978 |
|
|
|
5,311 |
|
Severance expense (1) |
|
|
— |
|
|
|
376 |
|
|
|
8,969 |
|
Transaction expenses (2) |
|
|
— |
|
|
|
1,786 |
|
|
|
17,387 |
|
Loss (gain) on sale of assets |
|
|
6,606 |
|
|
|
9,211 |
|
|
|
(1,173 |
) |
Adjusted EBITDA |
|
$ |
178,216 |
|
|
$ |
177,664 |
|
|
$ |
154,342 |
|
|
|
|
|
|
|
|
||||||
Net income percentage |
|
|
12.4 |
% |
|
|
9.4 |
% |
|
|
2.2 |
% |
Adjusted EBITDA percentage |
|
|
55.2 |
% |
|
|
53.9 |
% |
|
|
49.8 |
% |
(1) |
Represents severance expense related to the |
(2) |
Represents certain costs associated with non-recurring professional services and other costs, primarily related to the |
|
||||||||||||
Contract Services |
||||||||||||
|
|
Three Months Ended |
||||||||||
(in thousands, excluding percentages) |
|
|
|
|
|
|
||||||
Total revenues |
|
$ |
293,534 |
|
|
$ |
288,956 |
|
|
$ |
276,250 |
|
Cost of operations (excluding depreciation and amortization) |
|
|
(93,137 |
) |
|
|
(93,235 |
) |
|
|
(99,333 |
) |
Depreciation and amortization |
|
|
(66,135 |
) |
|
|
(70,529 |
) |
|
|
(69,463 |
) |
Gross margin |
|
$ |
134,262 |
|
|
$ |
125,192 |
|
|
$ |
107,454 |
|
Gross margin percentage |
|
|
45.7 |
% |
|
|
43.3 |
% |
|
|
38.9 |
% |
Depreciation and amortization |
|
|
66,135 |
|
|
|
70,529 |
|
|
|
69,463 |
|
Adjusted gross margin |
|
$ |
200,397 |
|
|
$ |
195,721 |
|
|
$ |
176,917 |
|
Adjusted gross margin percentage |
|
|
68.3 |
% |
|
|
67.7 |
% |
|
|
64.0 |
% |
Other Services |
||||||||||||
|
Three Months Ended |
|||||||||||
(in thousands, excluding percentages) |
|
|
|
|
|
|
||||||
Total revenues |
|
$ |
29,309 |
|
|
$ |
40,686 |
|
|
$ |
33,403 |
|
Cost of operations (excluding depreciation and amortization) |
|
|
(22,114 |
) |
|
|
(35,226 |
) |
|
|
(27,936 |
) |
Depreciation and amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gross margin |
|
$ |
7,195 |
|
|
$ |
5,460 |
|
|
$ |
5,467 |
|
Gross margin percentage |
|
|
24.5 |
% |
|
|
13.4 |
% |
|
|
16.4 |
% |
Depreciation and amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted gross margin |
|
$ |
7,195 |
|
|
$ |
5,460 |
|
|
$ |
5,467 |
|
Adjusted gross margin percentage |
|
|
24.5 |
% |
|
|
13.4 |
% |
|
|
16.4 |
% |
|
||||||||||||
|
|
Three Months Ended |
||||||||||
(in thousands) |
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
|
$ |
177,172 |
|
|
$ |
114,328 |
|
|
$ |
121,082 |
|
Maintenance capital expenditures |
|
|
(17,565 |
) |
|
|
(16,407 |
) |
|
|
(19,147 |
) |
Severance expense (1) |
|
|
— |
|
|
|
376 |
|
|
|
8,969 |
|
Transaction expenses (2) |
|
|
— |
|
|
|
1,786 |
|
|
|
17,387 |
|
Change in operating assets and liabilities |
|
|
(38,478 |
) |
|
|
18,679 |
|
|
|
(32,372 |
) |
Other (3) |
|
|
(4,705 |
) |
|
|
(2,678 |
) |
|
|
(5,302 |
) |
Discretionary cash flow |
|
$ |
116,424 |
|
|
$ |
116,084 |
|
|
$ |
90,617 |
|
Growth capital expenditures (4)(5) |
|
|
(37,966 |
) |
|
|
(55,983 |
) |
|
|
(77,257 |
) |
Other capital expenditures (4) |
|
|
(16,398 |
) |
|
|
(22,258 |
) |
|
|
(13,133 |
) |
Proceeds from sale of assets |
|
|
8,230 |
|
|
|
9,376 |
|
|
|
411 |
|
Free cash flow |
|
$ |
70,290 |
|
|
$ |
47,219 |
|
|
$ |
638 |
|
(1) |
Represents severance expense related to the |
(2) |
Represents certain costs associated with non-recurring professional services and other costs, primarily related to the |
(3) |
Includes non-cash lease expense, provision for credit losses and inventory reserve. |
(4) |
For the three months ended |
(5) |
For the three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806092879/en/
Investor Contact
ir@kodiakgas.com
(936) 755-3529
Source: