Press Release: ProFrac Holding Corp. Reports Third Quarter 2024 Results

Dow Jones
2024/11/05
Long-term debt -- related party                   14.6            18.6 
Operating lease liabilities                      113.4            67.8 
Tax receivable agreement liability                68.1            68.1 
Other liabilities                                  9.0            15.2 
                                           -----------      ---------- 
Total liabilities                              1,906.3         1,742.1 
                                           -----------      ---------- 
 
Mezzanine equity: 
Series A preferred stock                          62.3            58.7 
 
Stockholders' equity: 
 Class A common stock                              1.5             1.5 
 Additional paid-in capital                    1,229.5         1,225.4 
 Accumulated deficit                           (129.7)          (16.0) 
 Accumulated other comprehensive 
  income                                           0.3             0.3 
                                           -----------      ---------- 
 Total stockholders' equity 
  attributable to ProFrac Holding 
  Corp.                                        1,101.6         1,211.2 
 Noncontrolling interests                         65.6            58.7 
                                           -----------      ---------- 
 Total stockholders' equity                    1,167.2         1,269.9 
                                           -----------      ---------- 
Total liabilities, mezzanine equity, 
 and stockholders' equity               $      3,135.8   $     3,070.7 
                                           ===========      ========== 
 
 
ProFrac Holding Corp. (NasdaqGS: ACDC) 
--------------------------------------------------------------------------- 
Consolidated Statements of Operations (unaudited) 
 
                           Three Months Ended          Nine Months Ended 
                   ----------------------------------  ------------------ 
                   Sep. 30  Jun. 30  Sep. 30  Jun. 30  Sep. 30   Sep. 30 
(In millions)       2024     2024     2023     2023      2024      2023 
----------------   -------  -------  -------  -------  --------  -------- 
Total revenues     $ 575.3  $ 579.4  $ 574.2  $ 709.2  $1,736.2  $2,140.9 
 
Operating costs 
and expenses: 
 Cost of 
  revenues, 
  exclusive of 
  depreciation, 
  depletion and 
  amortization       390.7    393.1    376.8    474.6   1,157.5   1,405.4 
 Selling, 
  general, and 
  administrative      51.9     54.1     52.7     63.5     156.6     186.0 
 Depreciation, 
  depletion and 
  amortization       112.7    103.4    111.5    108.9     328.9     330.7 
 Acquisition and 
  integration 
  costs                2.0      2.9      2.6      5.2       5.1      20.1 
 Goodwill 
  impairment           6.8     67.7       --       --      74.5        -- 
 Other operating 
  expense, net        15.5      7.4     10.1      3.3      27.2      17.8 
                    ------   ------   ------   ------   -------   ------- 
 Total operating 
  costs and 
  expenses           579.6    628.6    553.7    655.5   1,749.8   1,960.0 
 
Operating income 
 (loss)              (4.3)   (49.2)     20.5     53.7    (13.6)     180.9 
 
Other income 
(expense): 
 Interest 
  expense, net      (40.6)   (39.6)   (40.2)   (41.0)   (117.8)   (116.1) 
 Gain (loss) on 
  extinguishment 
  of debt               --       --       --       --     (0.8)       4.1 
 Other income 
  (expense), net     (0.1)    (0.5)    (4.9)    (7.7)       1.2    (22.0) 
                    ------   ------   ------   ------   -------   ------- 
Income (loss) 
 before income 
 taxes              (45.0)   (89.3)   (24.6)      5.0   (131.0)      46.9 
Income tax 
 benefit 
 (expense)             1.5     23.7      6.7    (9.6)      24.9     (9.6) 
                    ------   ------   ------   ------   -------   ------- 
Net income (loss)   (43.5)   (65.6)   (17.9)    (4.6)   (106.1)      37.3 
Less: net 
 (income) loss 
 attributable to 
 noncontrolling 
 interests           (1.7)    (1.1)    (1.0)      1.5     (4.0)       4.7 
Less: net 
 (income) loss 
 attributable to 
 redeemable 
 noncontrolling 
 interests              --       --       --      0.2        --    (41.8) 
                    ------   ------   ------   ------   -------   ------- 
Net income (loss) 
 attributable to 
 ProFrac Holding 
 Corp.             $(45.2)  $(66.7)  $(18.9)  $ (2.9)  $(110.1)  $    0.2 
                    ======   ======   ======   ======   =======   ======= 
Net loss 
 attributable to 
 Class A common 
 shareholders      $(46.4)  $(67.9)  $(27.5)  $ (2.9)  $(113.7)  $  (8.4) 
                    ======   ======   ======   ======   =======   ======= 
 
 
ProFrac Holding Corp. (NasdaqGS: ACDC) 
------------------------------------------------------------------------- 
Consolidated Statements of Cash Flows (unaudited) 
 
                        Three Months Ended         Nine Months Ended 
                   ----------------------------  ---------------------- 
                   Sep. 30   Jun. 30   Sep. 30    Sep. 30     Sep. 30 
(In millions)        2024      2024      2023       2024        2023 
----------------   --------  --------  --------  ----------  ---------- 
Cash flows from 
operating 
activities: 
 Net income 
  (loss)           $ (43.5)  $ (65.6)  $ (17.9)  $  (106.1)  $     37.3 
 Adjustments to 
 reconcile net 
 income (loss) 
 to net cash 
 provided by 
 operating 
 activities: 
 Depreciation, 
  depletion and 
  amortization        112.7     103.4     111.5       328.9       330.7 
 Amortization of 
  acquired 
  unfavorable 
  contracts          (11.7)    (10.9)    (16.4)      (39.1)      (41.0) 
 Stock-based 
  compensation          1.1       2.9       4.4         6.1        27.3 
 Loss (gain) on 
  disposal of 
  assets, net         (1.4)       0.3     (1.3)       (2.5)       (0.3) 
 Gain on 
  insurance 
  recoveries             --     (3.2)        --       (3.2)          -- 
 Non-cash loss 
  (gain) on 
  extinguishment 
  of debt                --        --        --         0.8       (4.1) 
 Amortization of 
  debt issuance 
  costs                 3.6       4.4       5.9        11.2        18.8 
 Acquisition 
  earnout 
  adjustment             --        --        --          --       (6.6) 
 Unrealized loss 
  on investments, 
  net                   1.1       1.0       5.1         0.9        24.1 
 Provision for 
  supply 
  commitment 
  charges               9.4        --        --         9.6          -- 
 Goodwill 
  impairment            6.8      67.7        --        74.5          -- 
 Deferred tax 
  expense 
  (benefit)             1.8    (27.4)       5.0      (25.4)         5.0 
 Other non-cash 
  items, net          (0.1)        --        --       (0.1)         0.1 
 Changes in 
  operating 
  assets and 
  liabilities          18.2      40.9      27.3        35.2       119.5 
                    -------   -------   -------   ---------   --------- 
Net cash provided 
 by operating 
 activities            98.0     113.5     123.6       290.8       510.8 
                    -------   -------   -------   ---------   --------- 
 
Cash flows from 
investing 
activities: 
 Acquisitions, 
  net of cash 
  acquired               --   (194.4)        --     (194.4)     (456.5) 
 Investment in 
  property, plant 
  & equipment        (70.0)    (61.9)    (52.6)     (191.8)     (233.9) 
 Proceeds from 
  sale of assets        2.9      22.4       1.6        31.9         3.0 
 Proceeds from 
  insurance 
  recoveries            0.1       4.4        --         4.5          -- 
 Other 
  investments            --     (2.0)        --       (2.0)          -- 
                    -------   -------   -------   ---------   --------- 
Net cash used in 
 investing 
 activities          (67.0)   (231.5)    (51.0)     (351.8)     (687.4) 
                    -------   -------   -------   ---------   --------- 
 
Cash flows from 
financing 
activities: 
 Proceeds from 
  issuance of 
  long-term debt       15.5     120.9      14.5       136.4       334.7 
 Repayments of 
  long-term debt     (54.4)    (18.1)    (23.4)     (110.0)     (103.9) 
 Borrowings from 
  revolving 
  credit 
  agreements          546.2     533.1     355.3     1,580.4     1,219.9 
 Repayments of 
  revolving 
  credit 
  agreements        (536.9)   (518.5)   (469.5)   (1,540.6)   (1,315.4) 
 Payment of debt 
  issuance costs      (0.1)     (2.3)     (0.4)       (3.5)      (18.9) 
 Tax withholding 
  related to net 
  share 
  settlement of 
  equity awards          --     (1.4)        --       (1.5)       (0.8) 
 Proceeds from 
  issuance of 
  Series A 
  preferred 
  stock                  --        --      50.0          --        50.0 
 Payment of 
  Series A 
  preferred stock 
  issuance costs         --        --     (1.1)          --       (1.1) 
Net cash provided 
 by (used in) 
 financing 
 activities          (29.7)     113.7    (74.6)        61.2       164.5 
                    -------   -------   -------   ---------   --------- 
 
Net increase 
 (decrease) in 
 cash, cash 
 equivalents, and 
 restricted cash        1.3     (4.3)     (2.0)         0.2      (12.1) 
Cash, cash 
 equivalents, and 
 restricted cash 
 beginning of 
 period                24.2      28.5      27.8        25.3        37.9 
                    -------   -------   -------   ---------   --------- 
Cash, cash 
 equivalents, and 
 restricted cash 
 end of period     $   25.5  $   24.2  $   25.8  $     25.5  $     25.8 
                    =======   =======   =======   =========   ========= 
 
 
ProFrac Holding Corp. (NasdaqGS: ACDC) 
------------------------------------------------------------------------ 
Reconciliation of Net Income (Loss) to Adjusted EBITDA 
 
                         Three Months Ended          Nine Months Ended 
                  ---------------------------------  ----------------- 
                                              Jun. 
                  Sep. 30  Jun. 30  Sep. 30    30    Sep. 30   Sep. 30 
(In millions)      2024     2024     2023     2023     2024     2023 
---------------   -------  -------  -------  ------  --------  ------- 

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November 05, 2024 05:00 ET (10:00 GMT)

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