Article content material
CALGARY, Alberta, Nov. 06, 2024 (GLOBE NEWSWIRE) — Calfrac Nicely Companies Ltd. (“Calfrac” or “the Firm”) (TSX: CFW) broadcasts its monetary and working outcomes for the three and 9 months ended September 30, 2024. The next press launch ought to be learn along with the administration’s dialogue and evaluation and interim consolidated monetary statements and notes thereto as at September 30, 2024. Readers also needs to consult with the “Ahead-looking statements” authorized advisory and the part relating to “Non-GAAP Measures” on the finish of this press launch. All monetary quantities and measures are expressed in Canadian {dollars} until in any other case indicated. Further details about Calfrac is on the market on the SEDAR+ web site at www.sedarplus.ca, together with the Firm’s Annual Info Type for the 12 months ended December 31, 2023.
Commercial 2
Article content material
CEO’S MESSAGE
Calfrac achieved income of $430.1 million through the third quarter, which was constant on a sequential foundation with the second quarter as progress throughout a number of service strains in Argentina offset decrease utilization in North America. The Firm’s Argentinean operations leveraged its second horizontal fracturing fleet within the Vaca Muerta shale play and graduation of its first offshore coiled tubing program to provide the best quarterly revenue within the nation’s historical past. In the course of the interval, Calfrac improved upon its year-over-year security file because it exited September with a trailing twelve-month Complete Recordable Harm Frequency (“TRIF”) of 0.81, as in comparison with 1.14 in 2023. The Firm expects to navigate the altering market circumstances by way of 2025 by prudently deploying capital and maximizing web earnings to generate sustainable returns for its shareholders.
Calfrac’s Chief Govt Officer, Pat Powell commented: “I’m happy with the best way that the Calfrac staff carried out through the third quarter. I’m trying ahead to ending the 12 months sturdy as we proceed to securely and effectively execute on our consumer’s growth plans in North America and Argentina to maximise returns for our shareholders.”
Commercial 3
Article content material
SELECT FINANCIAL HIGHLIGHTS – CONTINUING OPERATIONS
Three Months Ended Sep. 30, |
9 Months Ended Sep. 30, |
|||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
(C$000s, besides per share quantities) | ($) | ($) | (%) | |||||||||
(unaudited) | ||||||||||||
Income | 430,109 | 483,093 | (11 | ) | 1,186,252 | 1,442,879 | (18 | ) | ||||
Adjusted EBITDA(1) | 65,039 | 91,286 | (29 | ) | 156,482 | 262,865 | (40 | ) | ||||
Consolidated money flows offered by working actions | 23,910 | 101,264 | (76 | ) | 42,713 | 160,350 | (73 | ) | ||||
Capital expenditures | 22,509 | 50,825 | (56 | ) | 137,334 | 116,017 | 18 | |||||
Web (loss) earnings | (6,687 | ) | 97,523 | (107 | ) | 14,959 | 184,367 | (92 | ) | |||
Per share – primary | (0.08 | ) | 1.20 | (107 | ) | 0.17 | 2.28 | (93 | ) | |||
Per share – diluted | (0.08 | ) | 1.09 | (107 | ) | 0.17 | 2.12 | (92 | ) |
As at | Sep. 30, | Dec. 31, | Change | |||
2024 | 2023 | |||||
(C$000s) | ($) | ($) | (%) | |||
(unaudited) | ||||||
Money and money equivalents | 17,684 | 34,140 | (48 | ) | ||
Working capital, finish of interval | 307,139 | 236,392 | 30 | |||
Complete property, finish of interval | 1,297,460 | 1,126,197 | 15 | |||
Lengthy-term debt, finish of interval | 349,964 | 250,777 | 40 | |||
Web debt(1)(2) | 354,412 | 241,065 | 47 | |||
Complete consolidated fairness, finish of interval | 643,776 | 615,903 | 5 |
(1) Discuss with “Non-GAAP Measures” on web page 7 for additional data.
(2) Refer to notice 10 of the consolidated interim financial statements for additional data.
Article content material
Commercial 4
Article content material
THIRD QUARTER OVERVIEW
Within the third quarter of 2024, the Firm:
- generated income of $430.1 million, a lower of 11 % from the third quarter in 2023 ensuing primarily from decrease exercise and a decrease pricing surroundings in the USA;
- reported third-quarter Adjusted EBITDA of $65.0 million versus $91.3 million within the third quarter of 2023 primarily on account of decrease utilization in North America and pricing in the USA, offset partially by improved utilization in Argentina because the Firm operated two unconventional fracturing spreads concurrently for parts of the third quarter;
- reported a web loss from persevering with operations of $6.7 million or $0.08 per share diluted in comparison with web earnings of $97.5 million or $1.09 per share diluted through the third quarter in 2023;
- elevated period-end working capital to $307.1 million from $236.4 million at December 31, 2023, attributable to a mix of upper exercise and geographical combine; and
- incurred capital expenditures from persevering with operations of $22.5 million, which included $8.7 million of enlargement capital in Argentina.
Commercial 5
Article content material
FINANCIAL OVERVIEW – CONTINUING OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 VERSUS 2023
NORTH AMERICA
Three Months Ended Sep. 30, |
9 Months Ended Sep. 30, |
|||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
(C$000s, besides operational and trade fee data) | ($) | ($) | (%) | |||||||||
(unaudited) | ||||||||||||
Income | 289,225 | 401,291 | (28 | ) | 871,705 | 1,190,660 | (27 | ) | ||||
Adjusted EBITDA(1) | 31,372 | 83,023 | (62 | ) | 100,643 | 234,793 | (57 | ) | ||||
Adjusted EBITDA (%)(1) | 10.8 | 20.7 | (48 | ) | 11.5 | 19.7 | (42 | ) | ||||
Fracturing income per job ($) | 35,452 | 43,633 | (19 | ) | 35,563 | 43,480 | (18 | ) | ||||
Variety of fracturing jobs | 7,906 | 8,870 | (11 | ) | 23,791 | 26,472 | (10 | ) | ||||
Energetic pumping horsepower, finish of 12 months (000s) | 1,009 | 1,035 | (3 | ) | 1,009 | 1,035 | (3 | ) | ||||
US$/C$ common trade fee(2) | 1.3641 | 1.3411 | 2 | 1.3604 | 1.3456 | 1 |
(1) Discuss with “Non-GAAP Measures” on web page 7 for additional data.
(2) Supply: Financial institution of Canada.
OUTLOOK
Calfrac produced decrease sequential profitability within the third quarter pushed by decreased utilization in Canada mixed with a change in buyer combine in the USA. Nevertheless, exercise in the USA improved all through the interval and the Firm expects this momentum to proceed into the fourth quarter. In response to increased demand for the Firm’s providers, Calfrac briefly transferred tools from Canada to service shoppers within the Williston basin. Nevertheless, the Firm plans to return this massive fracturing fleet to Canada late within the fourth quarter. Calfrac anticipates that strong utilization in the USA will drive improved sequential quarter-over-quarter profitability in North America.
Commercial 6
Article content material
The Firm made additional progress on its tools modernization program and exited the third quarter with 60 Tier IV Dynamic Gasoline Mixing (“DGB”) pumps and anticipates working the equal of 5 Tier IV DGB fleets within the first quarter of 2025.
THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2023
REVENUE
Income from Calfrac’s North American operations decreased to $289.2 million through the third quarter of 2024 from $401.3 million within the comparable quarter of 2023. The Firm’s operations in North America had a gradual begin to the quarter, however gained momentum because the quarter progressed. Utilization grew all through the third quarter and the Firm exited with excessive utilization of its 13 fracturing fleets in North America. The Firm operated 15 fleets within the comparable quarter of 2023. Decrease pricing in the USA contributed to the 19 % lower in common income per job within the third quarter of 2024 versus the identical quarter in 2023. Coiled tubing income decreased by 37 % as in comparison with the third quarter in 2023 primarily attributable to decrease utilization of Calfrac’s six deep coiled tubing items mixed with the completion of smaller jobs.
Commercial 7
Article content material
ADJUSTED EBITDA
The Firm’s operations in North America generated Adjusted EBITDA of $31.4 million or 11 % of income through the third quarter of 2024 in comparison with $83.0 million or 21 % of income in the identical interval in 2023. This lower was primarily as a result of decline in fracturing fleet utilization in the USA mixed with decrease pricing relative to the identical interval in 2023.
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2023
REVENUE
Income from Calfrac’s North American operations decreased to $871.7 million through the first 9 months in 2024 from $1.2 billion within the comparable interval in 2023. The 27 % lower in income was primarily attributable to decrease exercise in the USA mixed with decrease pricing. Consequently, Calfrac idled two fracturing fleets throughout February 2024 and operated a mean of 10 fleets in North America through the first 9 months of 2024 as in comparison with 15 fleets within the comparable interval in 2023. As well as, exercise for the Firm’s coiled tubing operations in North America decreased by 35 % from the primary 9 months of 2023 attributable to decrease business demand for its six crewed items.
Commercial 8
Article content material
ADJUSTED EBITDA
The Firm’s operations in North America generated Adjusted EBITDA of $100.6 million through the first 9 months of 2024 in comparison with $234.8 million in the identical interval in 2023. This lower in Adjusted EBITDA was largely pushed by decrease fracturing and coiled tubing utilization in North America through the first quarter of 2024 in addition to decrease general pricing ranges in the USA. Nevertheless, utilization through the second quarter of 2024 improved for Calfrac’s fracturing fleets in North America, notably in Could and June, because the completion applications of the Firm’s core shoppers considerably elevated. The third quarter began slowly on each side of the border, however gained momentum because the quarter progressed with the Firm working 13 fleets at close to full utilization in September.
ARGENTINA
Three Months Ended Sep. 30, |
9 Months Ended Sep. 30, |
|||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
(C$000s, besides operational and trade fee data) | ($) | ($) | (%) | ($) | ($) | (%) | ||||||
(unaudited) | ||||||||||||
Income | 140,884 | 81,802 | 72 | 314,547 | 252,219 | 25 | ||||||
Adjusted EBITDA(1) | 37,463 | 14,331 | 161 | 68,222 | 43,623 | 56 | ||||||
Adjusted EBITDA (%)(1) | 26.6 | 17.5 | 52 | 21.7 | 17.3 | 25 | ||||||
Fracturing income per job ($) | 91,597 | 78,634 | 16 | 84,083 | 83,242 | 1 | ||||||
Variety of fracturing jobs | 837 | 582 | 44 | 2,090 | 1,784 | 17 | ||||||
Energetic pumping horsepower, finish of interval (000s) | 139 | 139 | — | 139 | 139 | — | ||||||
US$/C$ common trade fee(2) | 1.3641 | 1.3411 | 2 | 1.3604 | 1.3456 | 1 |
Commercial 9
Article content material
(1) Discuss with “Non-GAAP Measures” on web page 7 for additional data.
(2) Supply: Financial institution of Canada.
OUTLOOK
Calfrac’s Argentinean operations leveraged the sturdy momentum from the second quarter to sequentially enhance profitability by roughly 3 times, because it produced Adjusted EBITDA of $37.5 million, a file quarter for this working division. Even with the expanded footprint, it improved upon its best-in-class security file by exiting September with a TRIF of 0.33, a lower from 0.41 in June. Whereas the Firm expects constant utilization for its offshore coiled tubing unit by way of to the top of the 12 months, exercise for its fracturing operations within the Vaca Muerta shale play will expertise a sequential lower in accessible spot work. At present, Calfrac is negotiating with its long-term clients on multi-year service contracts and plans to capitalize on the rising growth on this nation.
THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2023
REVENUE
Calfrac’s Argentinean operations generated income of $140.9 million through the third quarter of 2024 versus $81.8 million within the comparable quarter in 2023. The 72 % enhance in income was pushed by a major enhance within the variety of fracturing jobs accomplished through the quarter and improved pricing for spot work. For the primary time within the Firm’s historical past in Argentina, two unconventional fracturing spreads operated within the Vaca Muerta shale play on the identical time. The profitable operations and increasing buyer base reinforces administration’s resolution so as to add tools into the nation, permitting the Firm to help and take part within the anticipated progress of Argentina’s power sector transferring ahead. The Firm additionally demonstrated progress in exercise throughout its different service strains primarily as a result of further income generated from its new offshore coiled tubing operations mixed with the bundled nature of its service contracts.
Commercial 10
Article content material
ADJUSTED EBITDA
The Firm’s operations in Argentina generated Adjusted EBITDA of $37.5 million through the third quarter of 2024 in comparison with $14.3 million in the identical quarter of 2023, whereas the Firm’s Adjusted EBITDA margins elevated to 27 % from 18 %. This enhance was primarily as a result of important income progress and efficiencies ensuing from working two unconventional fracturing spreads concurrently through the quarter.
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2023
REVENUE
Calfrac’s Argentinean operations generated income of $314.5 million through the first 9 months of 2024 in comparison with $252.2 million within the first 9 months of 2023 because the Firm demonstrated sturdy exercise progress throughout all service strains. The first driver for the rise in income was increased fracturing exercise because the Firm operated two unconventional fracturing spreads concurrently for parts of the third quarter mixed with income generated from its newly commenced offshore coiled tubing operations. Cementing income additionally elevated as a result of bundled nature of the Firm’s contracted providers within the Vaca Muerta shale play.
Commercial 11
Article content material
ADJUSTED EBITDA
The Firm’s operations in Argentina generated Adjusted EBITDA of $68.2 million or 22 % of income through the first 9 months in 2024 versus $43.6 million or 17 % of income within the comparable interval in 2023. The Firm continued to give attention to rising its working presence within the Vaca Muerta shale play, which greater than offset decrease utilization in Las Heras following the completion of its contract with a significant consumer in that area through the second quarter of 2024.
SUMMARY OF QUARTERLY RESULTS – CONTINUING OPERATIONS
Three Months Ended | Dec. 31, | Mar. 31, | Jun. 30, | Sep. 30, | Dec. 31, | Mar. 31, | Jun. 30, | Sep. 30, | ||||||||
2022 | 2023 | 2023 | 2023 | 2023 | 2024 | 2024 | 2024 | |||||||||
(C$000s, besides per share and working information) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||
(unaudited) | ||||||||||||||||
Monetary | ||||||||||||||||
Income | 447,847 | 493,323 | 466,463 | 483,093 | 421,402 | 330,096 | 426,047 | 430,109 | ||||||||
Adjusted EBITDA(1)(2) | 75,954 | 83,794 | 87,785 | 91,286 | 62,591 | 26,057 | 65,386 | 65,039 | ||||||||
Web earnings (loss) | 14,757 | 36,313 | 50,531 | 97,523 | 13,202 | (2,903 | ) | 24,549 | (6,687 | ) | ||||||
Per share – primary | 0.27 | 0.45 | 0.62 | 1.20 | 0.16 | (0.03 | ) | 0.29 | (0.08 | ) | ||||||
Per share – diluted | 0.17 | 0.41 | 0.58 | 1.09 | 0.15 | (0.03 | ) | 0.29 | (0.08 | ) | ||||||
Capital expenditures(2) | 35,810 | 34,474 | 30,718 | 50,825 | 49,397 | 48,072 | 66,753 | 22,509 |
Commercial 12
Article content material
(1) Discuss with “Non-GAAP Measures” on web page 7 for additional data.
(2) Efficient January 1, 2023, recorded expenditures associated to fluid finish elements as an working expense reasonably than as a capital expenditure. This variation in accounting estimate was recorded on a potential foundation.
CAPITAL EXPENDITURES – CONTINUING OPERATIONS
Three Months Ended Sep. 30, |
9 Months Ended Sep. 30, |
|||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
(C$000s) | ($) | ($) | (%) | |||||||||
North America | 13,027 | 47,463 | (73 | ) | 108,541 | 108,041 | — | |||||
Argentina | 9,482 | 3,362 | 182 | 28,793 | 7,976 | 261 | ||||||
Persevering with Operations | 22,509 | 50,825 | (56 | ) | 137,334 | 116,017 | 18 |
Capital expenditures had been $22.5 million for the three months ended September 30, 2024 versus $50.8 million within the comparable interval in 2023. Calfrac’s Board of Administrators authorised a 2024 whole capital finances of roughly $210.0 million in December 2023. This was a rise of $45.0 million from the earlier 12 months, primarily to proceed its fracturing fleet modernization program in North America and dedicate $40.0 million to help its Argentinean operations whereas implementing new company-wide field-based applied sciences. On March 13, 2024, the Board of Administrators authorised a deferral of as much as $50.0 million of capital allotted to its North American fleet modernization program to align with market circumstances at the moment. On July 31, 2024, the Board of Administrators authorised a reinstatement of $40.0 million of its authentic capital finances to facilitate enlargement of the Firm’s fracturing operations within the Vaca Muerta shale play in Argentina and to accommodate incremental upkeep capital in North America, bringing the revised finances to $200.0 million.
Commercial 13
Article content material
OTHER DEVELOPMENTS
On the finish of the third quarter, Marco Aranguren was appointed President, United States Operations rather than Mark Rosen who’s not with the Firm. Marco has been with Calfrac since 2010 and has held a number of senior administration roles, most just lately as Director Basic, Argentina Division since 2019. Marco’s expertise in Argentina is anticipated to assist drive enchancment in our working and monetary efficiency in the USA.
At the side of this switch, Adrian Martinez was appointed Director Basic, Argentina Division. Adrian joined the Firm in 2008 and has been a major contributor all through varied senior operations roles throughout his time at Calfrac, most just lately as Senior District Supervisor in Neuquén since 2017.
NON-GAAP MEASURES
Sure supplementary measures offered on this press launch, together with Adjusted EBITDA, Adjusted EBITDA proportion and Web Debt would not have any standardized that means beneath IFRS and, as a result of IFRS have been integrated as Canadian usually accepted accounting ideas (GAAP), these supplementary measures are additionally non-GAAP measures. These measures have been described and offered to offer shareholders and potential traders with further data relating to the Firm’s monetary outcomes, liquidity and skill to generate funds to finance its operations. These measures is probably not similar to comparable measures offered by different entities, and are defined under.
Commercial 14
Article content material
Adjusted EBITDA is outlined as web earnings or loss for the interval much less curiosity, taxes, depreciation and amortization, international trade losses (good points), non-cash stock-based compensation, and good points and losses which are extraordinary or non-recurring. Adjusted EBITDA is offered as a result of it provides a sign of the outcomes from the Firm’s principal enterprise actions previous to consideration of how its actions are financed and the influence of international trade, taxation and depreciation and amortization fees. Adjusted EBITDA for the interval was calculated as follows:
Three Months Ended Sep. 30, | 9 Months Ended Sep. 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
(C$000s) | ($) | ($) | ||||||
(unaudited) | ||||||||
Web earnings (loss) from persevering with operations | (6,687 | ) | 97,523 | 14,959 | 184,367 | |||
Add again (deduct): | ||||||||
Depreciation | 34,837 | 27,387 | 90,865 | 86,206 | ||||
Overseas trade losses | 6,062 | 1,415 | 4,578 | 7,884 | ||||
Achieve on disposal of property, plant and tools | 6,216 | (706 | ) | (168 | ) | (5,667 | ) | |
Reversal of impairment of property, plant and tools | — | (41,563 | ) | — | (41,563 | ) | ||
Litigation settlements | — | — | — | (6,805 | ) | |||
Restructuring fees | 4,148 | 1,059 | 5,555 | 2,991 | ||||
Inventory-based compensation | 1,271 | 1,469 | 5,574 | 2,810 | ||||
Curiosity | 9,089 | 7,262 | 23,015 | 23,023 | ||||
Revenue taxes | 10,103 | (2,560 | ) | 12,104 | 9,619 | |||
Adjusted EBITDA from persevering with operations | 65,039 | 91,286 | 156,482 | 262,865 | ||||
Much less: IFRS 16 lease funds | (3,437 | ) | (2,925 | ) | (9,888 | ) | (9,313 | ) |
Much less: Argentina EBITDA threshold adjustment(1) | (39,775 | ) | — | (48,351 | ) | — | ||
Financial institution EBITDA for covenant functions | 21,827 | 88,361 | 98,243 | 253,552 |
Commercial 15
Article content material
(1) Refer to notice 4 of the Firm’s consolidated interim monetary statements for the three and 9 months ended September 30, 2024.
Adjusted EBITDA proportion is a non-GAAP monetary ratio that’s decided by dividing Adjusted EBITDA by income for the corresponding interval.
Web Debt is outlined as long-term debt much less unamortized debt issuance prices plus lease obligations, much less money and money equivalents from persevering with operations. The calculation of web debt is disclosed in be aware 10 to the Firm’s interim monetary statements for the corresponding interval.
OTHER NON-STANDARD FINANCIAL TERMS
MAINTENANCE AND EXPANSION CAPITAL
Upkeep capital refers to expenditures in respect of capital additions, replacements or enhancements required to take care of ongoing enterprise operations. Enlargement capital refers to expenditures primarily for brand new objects, upgrades and/or tools that may broaden the Firm’s income and/or cut back its expenditures by way of working efficiencies. The willpower of what constitutes upkeep capital expenditures versus enlargement capital includes judgement by administration.
Commercial 16
Article content material
BUSINESS RISKS
The enterprise of Calfrac is topic to sure dangers and uncertainties. Prior to creating any funding resolution relating to Calfrac, traders ought to fastidiously think about, amongst different issues, the danger elements set forth within the Firm’s most just lately filed Annual Info Type beneath the heading “Threat Components” which is on the market on the SEDAR+ web site at www.sedarplus.ca beneath the Firm’s profile. Copies of the Annual Info Type might also be obtained on request with out cost from Calfrac at Suite 500, 407 – eighth Avenue S.W., Calgary, Alberta, Canada, T2P 1E5, or at www.calfrac.com.
ADDITIONAL INFORMATION
Calfrac’s frequent shares are publicly traded on the Toronto Inventory Trade beneath the buying and selling image “CFW”.
Calfrac offers specialised oilfield providers to exploration and manufacturing firms designed to extend the manufacturing of hydrocarbons from wells with persevering with operations targeted all through western Canada, the USA and Argentina. In the course of the first quarter of 2022, administration dedicated to a plan to promote the Firm’s Russian division, ensuing within the related property and liabilities being categorised as held on the market and offered within the Firm’s monetary statements as discontinued operations. The outcomes of the Firm’s discontinued operations are excluded from the dialogue and figures offered above until in any other case famous. See Word 3 to the Firm’s interim consolidated monetary statements for the three and 9 months ended September 30, 2024 for extra data on the Firm’s discontinued operations.
Commercial 17
Article content material
Additional data relating to Calfrac Nicely Companies Ltd., together with essentially the most just lately filed Annual Info Type, will be accessed on the Firm’s web site at www.calfrac.com or beneath the Firm’s public filings discovered at www.sedarplus.ca.
THIRD QUARTER CONFERENCE CALL
Calfrac can be conducting a convention name for analysts, brokers, traders and information media representatives to evaluate its 2024 third-quarter outcomes at 10:00 a.m. (Mountain Time) on Wednesday, November 6, 2024.
The decision may also be webcast and will be accessed by way of the hyperlink under. A replay of the webcast name may also be accessible on Calfrac’s web site for at the least 90 days.
https://edge.media-server.com/mmc/p/u6rkjvae
To take part within the Q&A session, chances are you’ll dial-in (toll free) 1-833-630-1956 (or at 1-412-317-1837 for worldwide individuals) fifteen (15) minutes previous to the beginning of the decision and ask for the Calfrac Nicely Companies Ltd. 2024 Third Quarter Earnings Launch Convention Name to register.
CONSOLIDATED BALANCE SHEETS
September 30, | December 31, | |||
2024 | 2023 | |||
(C$000s) | ($) | ($) | ||
ASSETS | ||||
Present property | ||||
Money and money equivalents | 17,684 | 34,140 | ||
Accounts receivable | 338,716 | 243,187 | ||
Revenue taxes recoverable | — | 794 | ||
Inventories | 152,241 | 123,015 | ||
Pay as you go bills and deposits | 27,804 | 22,799 | ||
536,445 | 423,935 | |||
Property categorised as held on the market | 45,394 | 34,084 | ||
581,839 | 458,019 | |||
Non-current property | ||||
Property, plant and tools | 666,740 | 614,555 | ||
Proper-of-use property | 19,881 | 24,623 | ||
Deferred earnings tax property | 29,000 | 29,000 | ||
715,621 | 668,178 | |||
Complete property | 1,297,460 | 1,126,197 | ||
LIABILITIES AND EQUITY | ||||
Present liabilities | ||||
Accounts payable and accrued liabilities | 202,576 | 176,817 | ||
Revenue taxes payable | 17,295 | — | ||
Present portion of lease obligations | 9,435 | 10,726 | ||
229,306 | 187,543 | |||
Liabilities immediately related to property categorised as held on the market | 31,895 | 20,858 | ||
261,201 | 208,401 | |||
Non-current liabilities | ||||
Lengthy-term debt | 349,964 | 250,777 | ||
Lease obligations | 12,697 | 13,702 | ||
Deferred earnings tax liabilities | 29,822 | 37,414 | ||
392,483 | 301,893 | |||
Complete liabilities | 653,684 | 510,294 | ||
Capital inventory | 911,365 | 910,908 | ||
Contributed surplus | 84,067 | 78,667 | ||
Collected deficit | (374,363 | ) | (389,872 | ) |
Collected different complete earnings | 22,707 | 16,200 | ||
Complete fairness | 643,776 | 615,903 | ||
Complete liabilities and fairness | 1,297,460 | 1,126,197 |
Commercial 18
Article content material
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Sep. 30, |
9 Months Ended Sep. 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
(C$000s, besides per share information) | ($) | ($) | ($) | ($) | ||||
Income | 430,109 | 483,093 | 1,186,252 | 1,442,879 | ||||
Value of gross sales | 385,918 | 403,803 | 1,077,364 | 1,222,373 | ||||
Gross revenue | 44,191 | 79,290 | 108,888 | 220,506 | ||||
Bills | ||||||||
Promoting, common and administrative | 19,408 | 17,919 | 54,400 | 42,843 | ||||
Overseas trade losses | 6,062 | 1,415 | 4,578 | 7,884 | ||||
Loss (acquire) on disposal of property, plant and tools | 6,216 | (706 | ) | (168 | ) | (5,667 | ) | |
Reversal of impairment of property, plant and tools | — | (41,563 | ) | — | (41,563 | ) | ||
Curiosity, web | 9,089 | 7,262 | 23,015 | 23,023 | ||||
40,775 | (15,673 | ) | 81,825 | 26,520 | ||||
Revenue earlier than earnings tax | 3,416 | 94,963 | 27,063 | 193,986 | ||||
Revenue tax expense (restoration) | ||||||||
Present | 10,706 | 3,240 | 20,517 | 13,747 | ||||
Deferred | (603 | ) | (5,800 | ) | (8,413 | ) | (4,128 | ) |
10,103 | (2,560 | ) | 12,104 | 9,619 | ||||
Web (loss) earnings from persevering with operations | (6,687 | ) | 97,523 | 14,959 | 184,367 | |||
Web earnings (loss) from discontinued operations | 1,260 | (10,951 | ) | 550 | (6,197 | ) | ||
Web (loss) earnings | (5,427 | ) | 86,572 | 15,509 | 178,170 | |||
Earnings (loss) per share – primary | ||||||||
Persevering with operations | (0.08 | ) | 1.20 | 0.17 | 2.28 | |||
Discontinued operations | 0.01 | (0.14 | ) | 0.01 | (0.08 | ) | ||
(0.06 | ) | 1.07 | 0.18 | 2.20 | ||||
Earnings (loss) per share – diluted | ||||||||
Persevering with operations | (0.08 | ) | 1.09 | 0.17 | 2.12 | |||
Discontinued operations | 0.01 | (0.14 | ) | 0.01 | (0.08 | ) | ||
(0.06 | ) | 0.97 | 0.18 | 2.05 |
Commercial 19
Article content material
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Sep. 30, |
9 Months Ended Sep. 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
(C$000s) | ($) | ($) | ($) | ($) | ||||
CASH FLOWS PROVIDED BY (USED IN) | ||||||||
OPERATING ACTIVITIES | ||||||||
Web (loss) earnings | (5,427 | ) | 86,572 | 15,509 | 178,170 | |||
Adjusted for the next: | ||||||||
Depreciation | 34,837 | 27,387 | 90,865 | 86,206 | ||||
Inventory-based compensation | 1,271 | 1,469 | 5,574 | 2,810 | ||||
Unrealized international trade losses (good points) | 4,636 | (2,650 | ) | 8,400 | 724 | |||
Loss (acquire) on disposal of property, plant and tools | 6,216 | (709 | ) | (184 | ) | (5,694 | ) | |
Impairment (reversal of) of property, plant and tools | 590 | (41,024 | ) | 1,767 | (41,024 | ) | ||
Impairment of stock | 2,206 | 985 | 9,574 | 3,677 | ||||
Impairment of different property | 5,093 | 14,768 | 10,568 | 17,454 | ||||
Curiosity | 8,769 | 7,171 | 22,505 | 22,841 | ||||
Curiosity paid | (13,038 | ) | (9,254 | ) | (25,417 | ) | (20,739 | ) |
Deferred earnings taxes | (603 | ) | (5,800 | ) | (8,413 | ) | (4,128 | ) |
Adjustments in objects of working capital | (20,640 | ) | 22,349 | (88,035 | ) | (79,947 | ) | |
Money flows offered by working actions | 23,910 | 101,264 | 42,713 | 160,350 | ||||
FINANCING ACTIVITIES | ||||||||
Issuance of long-term debt, web of debt issuance prices | 14,979 | 22,029 | 119,966 | 73,485 | ||||
Lengthy-term debt repayments | (25,000 | ) | (50,000 | ) | (25,000 | ) | (100,000 | ) |
Lease obligation principal repayments | (3,043 | ) | (2,613 | ) | (8,710 | ) | (8,412 | ) |
Proceeds on issuance of frequent shares from the train of warrants and inventory choices | — | 610 | 283 | 967 | ||||
Money flows (utilized in) offered by financing actions | (13,064 | ) | (29,974 | ) | 86,539 | (33,960 | ) | |
INVESTING ACTIVITIES | ||||||||
Buy of property, plant and tools | (28,383 | ) | (50,121 | ) | (150,338 | ) | (128,447 | ) |
Proceeds on disposal of property, plant and tools | 2,398 | 695 | 14,215 | 22,383 | ||||
Proceeds on disposal of right-of-use property | 727 | 138 | 1,055 | 1,247 | ||||
Money flows utilized in investing actions | (25,258 | ) | (49,288 | ) | (135,068 | ) | (104,817 | ) |
Impact of trade fee adjustments on money and money equivalents | (6,366 | ) | 1,841 | (7,481 | ) | (9,369 | ) | |
(Lower) enhance in money and money equivalents | (20,778 | ) | 23,843 | (13,297 | ) | 12,204 | ||
Money and money equivalents, starting of interval | 52,671 | 6,754 | 45,190 | 18,393 | ||||
Money and money equivalents, finish of interval | 31,893 | 30,597 | 31,893 | 30,597 | ||||
Included within the money and money equivalents per the steadiness sheet | 17,684 | 23,308 | 17,684 | 23,308 | ||||
Included within the property held on the market/discontinued operations | 14,209 | 7,289 | 14,209 | 7,289 |
Commercial 20
Article content material
ADVISORIES
FORWARD-LOOKING STATEMENTS
Sure statements contained on this press launch represent “forward-looking statements” or “forward-looking data” inside the that means of relevant securities legal guidelines (collectively, “forward-looking statements”). These statements relate to future occasions or the longer term efficiency of the Firm (as hereinafter outlined). All statements aside from statements of historic truth could also be forward-looking statements. Ahead-looking statements are sometimes, however not all the time, recognized by way of phrases resembling “search”, “anticipate”, “plan”, “proceed”, “estimate”, “forecast”, “anticipate”, “might”, “will”, “mission”, “predict”, “potential”, “focusing on”, “intend”, “might”, “may”, “ought to”, “consider” or comparable expressions.
Particularly, forward-looking statements on this press launch embody, however are usually not restricted to, statements with respect to exercise, demand, utilization and outlook for the Firm’s working divisions in North America and Argentina, together with with respect to Argentina’s financial and political outlook and the anticipated influence of administration adjustments in the USA; the availability and demand fundamentals of the strain pumping business; enter prices, margin and repair pricing tendencies and methods; working and financing methods, efficiency, priorities, metrics and estimates, such because the Firm’s strategic priorities to prudently deploy capital and maximize returns to shareholders; capital funding plans, together with the Firm’s fleet modernization program and timing thereof; the Firm’s debt, liquidity and monetary place; the Firm’s service high quality and the Firm’s intentions and expectations with respect to the foregoing.
Commercial 21
Article content material
These statements are derived from sure assumptions and analyses made by the Firm primarily based on its expertise and notion of historic tendencies, present circumstances, anticipated future developments and different elements that it believes are acceptable within the circumstances, together with, however not restricted to, the financial and political surroundings wherein the Firm operates, together with the continued implementation of Argentina financial reforms and liberalization of its oil and fuel business in addition to the present state of the strain pumping market in North America; the Firm’s expectations for its clients’ capital budgets, demand for providers and geographical areas of focus; the extent of merger and acquisition exercise amongst oil and fuel producers and its influence on the demand for properly completion providers; the impact of unconventional oil and fuel tasks have had on provide and demand fundamentals for oil and pure fuel; the impact of environmental, social and governance elements on buyer and investor preferences and capital deployment; the impact of the navy battle within the Ukraine and associated worldwide sanctions and counter-sanctions and restrictions by Russia on the Firm’s possession and deliberate sale of the Russian division; business tools ranges together with the variety of energetic fracturing fleets marketed by the Firm’s opponents and the timing of deployment of the Firm’s fleet upgrades; the Firm’s current contracts and the standing of present negotiations with key clients and suppliers; the continued effectiveness of price discount measures instituted by the Firm; and the chance that the present tax and regulatory regime will stay considerably unchanged.
Commercial 22
Article content material
Ahead-looking statements are topic to plenty of recognized and unknown dangers and uncertainties that would trigger precise outcomes to vary materially from the Firm’s expectations. Such threat elements embody however are usually not restricted to: (A) business dangers, together with however not restricted to, world financial circumstances and the extent of exploration, growth and manufacturing for oil and pure fuel in North America and Argentina; extra tools ranges; impacts of conservation measures and technological advances on the demand for the Firm’s providers; an intensely aggressive oilfield providers business; and hazards inherent within the business; (B) enterprise operations dangers, together with however not restricted to, fleet reinvestment threat, together with the power of the Firm to finance the capital obligatory for tools upgrades to help its operational wants whereas assembly authorities and buyer necessities and preferences; problem retaining, changing or including personnel; failure to repeatedly enhance tools, proprietary fluid chemistries and different services and products; seasonal volatility and local weather change; reliance on tools suppliers and fabricators; cybersecurity dangers; a concentrated buyer base; out of date expertise; failure to take care of security requirements and data; constrained demand for the Firm’s providers attributable to merger and acquisition exercise; improper entry to confidential data or misappropriation of Firm’s mental property rights; failure to comprehend anticipated advantages of acquisitions and inclinations; lack of a number of key staff; and progress associated threat on inside methods or worker base; (C) monetary dangers, together with however not restricted to, restrictions on the Firm’s entry to capital, together with the impacts of covenants beneath the Firm’s lending paperwork; direct and oblique publicity to risky credit score markets, together with rate of interest threat; fluctuations in forex trade charges and elevated inflation; value escalation and availability of uncooked supplies, diesel gasoline and part components; precise outcomes that are materially completely different from administration estimates and assumptions; inadequate inside controls; the Firm’s entry to capital and customary share value given a major variety of frequent shares are managed by two administrators of the Firm; potential dilution from excellent stock-based compensation, further fairness or debt securities; and adjustments in tax charges or reassessment threat by tax authorities; (D) geopolitical dangers, together with however not restricted to, international operations publicity, together with dangers regarding repatriation of money from international jurisdictions, unsettled political circumstances, battle, international trade charges and controls; dangers that the sale of the discontinued operations in Russia might not happen or be delayed; and threat related to compliance with relevant legislation; (E) authorized and regulatory dangers, together with however not restricted to, federal, provincial and state legislative and regulatory initiatives and legal guidelines; well being, security and environmental legal guidelines and rules; and authorized and administrative proceedings; and (F) environmental, social and governance dangers, together with however not restricted to, failure to successfully and well timed tackle the power transition; the direct and oblique prices of varied current and proposed local weather change rules; varied varieties of activism; and reputational threat or authorized legal responsibility ensuing from ESG commitments and disclosures. Additional details about these and different dangers and uncertainties are set forth within the Firm’s most just lately filed Annual Info Type beneath the heading “Threat Components” which is on the market on the SEDAR+ web site at www.sedarplus.ca beneath Firm’s profile.
Commercial 23
Article content material
Consequently, the entire forward-looking statements made on this press launch are certified by these cautionary statements and there will be no assurance that precise outcomes or developments anticipated by the Firm can be realized, or that they are going to have the anticipated penalties or results on the Firm or its enterprise or operations. These statements communicate solely as of the respective date of this press launch or the doc by reference herein. The Firm assumes no obligation to replace publicly any such forward-looking statements, whether or not on account of new data, future occasions or in any other case, besides as required pursuant to relevant securities legal guidelines.
For additional data, please contact:
Pat Powell, Chief Govt Officer
Mike Olinek, Chief Monetary Officer
Phone: 403-266-6000
www.calfrac.com
Article content material