Operating Results
During the first quarter of 2024, the Company reported revenues of $142.1 million, gross profit of $17.1 million and adjusted gross profitB of $26.1 million. During the first quarter, the Company generated ROIC of (10.9)% and adjusted ROICC of 6.0%.
During the first quarter of 2024, the Company reported general and administrative (G&A) expense of $12.3 million. Depreciation and
amortization expense (D&A) in the first quarter of 2024 was $9.5 million.
The Companys tax provision was approximately
$0.2 million for the quarter. The provision for 2024 is the result of the Companys tax position in state and non-U.S. tax jurisdictions.
Liquidity and Capital Expenditures
During the first
quarter of 2024, the Company reported net cash used in operating activities of $(8.8) million. Capital expenditures totaled $5.6 million during the first quarter of 2024.
As of March 31, 2024, Nines cash and cash equivalents were $10.2 million, and the Company had $27.3 million of availability under the
revolving credit facility, resulting in a total liquidity position of $37.5 million as of March 31, 2024. On March 31, 2024, the Company had $52.0 million of borrowings under the revolving credit facility.
As per the terms of the indenture governing Nines senior secured notes, the Company is required to periodically offer to repurchase such notes with a
portion of any Excess Cash Flow. Nine did not generate any Excess Cash Flow, as defined in the indenture, in the most recently ended two fiscal quarters (the six-month period ended March 31, 2024). As a
result, no Excess Cash Flow offer will be made to noteholders this month.
On November 6, 2023, the Company entered into an Equity Distribution
Agreement. During the quarter ended March 31, 2024, no sales were made under the Equity Distribution Agreement.
ABCSee end of press release for definitions of these non-GAAP measures. These measures are intended to provide additional information only and should not be
considered as alternatives to, or more meaningful than, net income (loss), gross profit or any other measure determined in accordance with GAAP. Certain items excluded from these measures are significant components in understanding and assessing a
companys financial performance, such as a companys cost of capital and tax structure, as well as the historic costs of depreciable assets. Our computation of these measures may not be comparable to other similarly titled measures of
other companies.
Conference Call Information
The
call is scheduled for Tuesday, May 7, 2024, at 9:00 am Central Time. Participants may join the live conference call by dialing U.S. (Toll Free): (877) 524-8416 or International: (412) 902-1028 and asking for the Nine Energy Service Earnings Call. Participants are encouraged to dial into the conference call ten to fifteen minutes before the scheduled start time to avoid any delays
entering the earnings call.