Attached files
Exhibit 99.1
SELECTED HISTORICAL FINANCIAL INFORMATION OF USWS
The following table shows selected historical financial information of USWS for the periods and as of the dates indicated. The selected historical consolidated financial information of USWS as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 was derived from the audited historical consolidated financial statements of USWS included in the Proxy Statement. The selected historical interim condensed consolidated financial information of USWS as of September 30, 2018 and for the nine months ended September 30, 2018 and 2017 was derived from the unaudited interim condensed consolidated financial statements of USWS included elsewhere in this Current Report on Form 8-K.
USWS’ historical results are not necessarily indicative of future operating results. The selected consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations of USWS,” as well as the historical consolidated financial statements of USWS and accompanying notes included elsewhere in this Current Report on Form 8-K and in the Proxy Statement.
Nine Months Ended | Twelve months Ended | |||||||||||||||||||||||||||
September 30, 2017 | December 31, 2017 | |||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||
Nine | ||||||||||||||||||||||||||||
Months | February 2 | January 1 | February 2 | January 1 | Year | Year | ||||||||||||||||||||||
Ended | through | through | through | through | Ended | Ended | ||||||||||||||||||||||
September 30 | September 30 | February 1 | December 31 | February 1 | December 31 | December 31 | ||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2015 | |||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||||||
Revenue | $ | 530,411 | $ | 317,405 | $ | 32,867 | $ | 466,487 | $ | 32,867 | $ | 294,755 | $ | 415,131 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||
Cost of services (excluding depreciation and amortization) | 427,243 | 270,614 | 28,053 | 394,125 | 28,053 | 262,311 | 324,731 | |||||||||||||||||||||
Depreciation and amortization | 77,547 | 63,014 | 4,920 | 92,430 | 4,920 | 66,084 | 68,084 | |||||||||||||||||||||
Selling, general and administrative expenses | 14,863 | 12,369 | 1,281 | 17,601 | 1,281 | 9,837 | 6,950 | |||||||||||||||||||||
Impairment loss on intangible assets | - | 20,247 | - | 20,247 | - | - | - | |||||||||||||||||||||
Loss on disposal of assets | 7,990 | 8,514 | 201 | 11,958 | 201 | 6,560 | 11,046 | |||||||||||||||||||||
Income (loss) from operations | 2,768 | (57,353 | ) | (1,588 | ) | (69,874 | ) | (1,588 | ) | (50,037 | ) | 4,320 | ||||||||||||||||
Interest expense, net | (21,672 | ) | (15,673 | ) | (4,067 | ) | (22,961 | ) | (4,067 | ) | (45,376 | ) | (37,364 | ) | ||||||||||||||
Other income (expense) | 331 | 69 | 1 | (787 | ) | 1 | 9 | 25 | ||||||||||||||||||||
Loss before income taxes | (18,573 | ) | (72,957 | ) | (5,654 | ) | (93,622 | ) | (5,654 | ) | (95,404 | ) | (33,019 | ) | ||||||||||||||
Provision for income taxes | - | - | - | - | - | - | - | |||||||||||||||||||||
Net loss | $ | (18,573 | ) | $ | (72,957 | ) | $ | (5,654 | ) | $ | (93,622 | ) | $ | (5,654 | ) | $ | (95,404 | ) | $ | (33,019 | ) | |||||||
Balance Sheet Data (at end of period): | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 20,799 | $ | 5,923 | $ | 5,192 | ||||||||||||||||||||||
Property and equipment, net | 276,423 | 251,288 | 197,512 | |||||||||||||||||||||||||
Total assets | 436,461 | 407,596 | 246,895 | |||||||||||||||||||||||||
Total debt | 257,062 | 264,594 | 300,633 | |||||||||||||||||||||||||
Total liabilities | 407,978 | 363,333 | 369,847 | |||||||||||||||||||||||||
Total mezzanine equity | - | - | 159,431 | |||||||||||||||||||||||||
Total members' equity (deficit) | 28,483 | 44,263 | (282,383 | ) | ||||||||||||||||||||||||
Cash Flow Statement Data: | ||||||||||||||||||||||||||||
Net cash provided (used) by operating activities | $ | 84,111 | $ | 20,401 | $ | (2,777 | ) | $ | 47,284 | $ | (2,777 | ) | $ | 22,219 | $ | 57,703 | ||||||||||||
Net cash used in investing activities | (50,546 | ) | (43,336 | ) | - | (71,565 | ) | - | (18,792 | ) | (94,213 | ) | ||||||||||||||||
Net cash provided (used) by financing activities | (18,689 | ) | 26,920 | 1,473 | 26,316 | 1,473 | 1,765 | 26,984 | ||||||||||||||||||||
Other Financial Data | ||||||||||||||||||||||||||||
EBITDA | $ | 80,646 | $ | 5,730 | $ | 3,333 | $ | 21,769 | $ | 3,333 | $ | 16,056 | $ | 72,429 | ||||||||||||||
Adjusted EBITDA (1) | $ | 97,915 | $ | 43,281 | $ | 4,628 | $ | 67,729 | $ | 4,628 | $ | 24,692 | $ | 85,754 |
(1) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. For a definition of EBITDA and Adjusted EBITDA and a reconciliation of EBITDA and Adjusted EBITDA to net income, see “— Non-GAAP Financial Measures” below. |
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Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered as a substitute for net income (loss), operating income (loss) or any other performance measure derived in accordance with United States generally accepted accounting principles (“GAAP”) or as an alternative to net cash provided by operating activities as a measure of USWS’ profitability or liquidity. USWS’ management believes EBITDA and Adjusted EBITDA are useful because they allow external users of its consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate its operating performance, compare the results of its operations from period to period and against USWS’ peers without regard to USWS’ financing methods, hedging positions or capital structure and because it highlights trends in USWS’ business that may not otherwise be apparent when relying solely on GAAP measures. USWS presents EBITDA and Adjusted EBITDA because it believes EBITDA and Adjusted EBITDA are important supplemental measures of its performance that are frequently used by others in evaluating companies in its industry. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income (loss) and may vary among companies, the EBITDA and Adjusted EBITDA USWS presents may not be comparable to similarly titled measures of other companies. USWS defines EBITDA as earnings before interest, income taxes, depreciation and amortization. USWS defines Adjusted EBITDA as EBITDA excluding the following: loss on disposal of assets; non-productive time; unit-based compensation; fleet start-up and relocation costs; restructuring and transaction related costs; and impairment loss.
The following table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, USWS’ most directly comparable financial measure calculated and presented in accordance with GAAP.
Nine Months Ended | Twelve months Ended | |||||||||||||||||||||||||||
September 30, 2017 | December 31, 2017 | |||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||
Nine | ||||||||||||||||||||||||||||
Months | February 2 | January 1 | February 2 | January 1 | Year | Year | ||||||||||||||||||||||
Ended | through | through | through | through | Ended | Ended | ||||||||||||||||||||||
September 30 | September 30 | February 1 | December 31 | February 1 | December 31 | December 31 | ||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net loss | $ | (18,573 | ) | $ | (72,957 | ) | $ | (5,654 | ) | $ | (93,622 | ) | $ | (5,654 | ) | $ | (95,404 | ) | $ | (33,019 | ) | |||||||
Interest expense, net | 21,672 | 15,673 | 4,067 | 22,961 | 4,067 | 45,376 | 37,364 | |||||||||||||||||||||
Income tax expense | - | - | - | - | - | - | - | |||||||||||||||||||||
Depreciation and amortization | 77,547 | 63,014 | 4,920 | 92,430 | 4,920 | 66,084 | 68,084 | |||||||||||||||||||||
EBITDA | 80,646 | 5,730 | 3,333 | 21,769 | 3,333 | 16,056 | 72,429 | |||||||||||||||||||||
Loss on disposal of assets (a) | 7,990 | 8,514 | 201 | 11,958 | 201 | 6,560 | 11,046 | |||||||||||||||||||||
Non-productive time (b) | 1,200 | - | - | - | - | - | - | |||||||||||||||||||||
Unit-based compensation (c) | 2,803 | 3,668 | - | 4,546 | - | - | 42 | |||||||||||||||||||||
Fleet start-up and relocation costs (d) | 1,717 | 2,542 | - | 4,190 | - | - | 1,660 | |||||||||||||||||||||
Restructuring and transaction related costs (e) | 2,265 | 2,580 | 1,094 | 5,019 | 1,094 | 2,076 | 577 | |||||||||||||||||||||
Impairment loss (f) | - | 20,247 | - | 20,247 | - | - | - | |||||||||||||||||||||
Fleet 6 fire (g) | 1,294 | - | - | - | - | - | - | |||||||||||||||||||||
Adjusted EBITDA | $ | 97,915 | $ | 43,281 | $ | 4,628 | $ | 67,729 | $ | 4,628 | $ | 24,692 | $ | 85,754 |
(a) | Represents losses on the disposal of property and equipment. |
(b) | Represents revenue shortfall associated with non-productive time due to sand mine issues with a customer. USWS is in the process of amending the customer contract to provide that the customer will reimburse for similar issues prospectively. |
(c) | Represents non-cash stock-based compensation. |
(d) | Represents non-recurring costs related to the start-up and relocation of hydraulic fracturing fleets. |
(e) | Represents non-recurring third-party professional fees and other costs including costs related to the capital restructuring and the potential sale of USWS. |
(f) | Represents a non-cash impairment loss with respect to intangible assets. |
(g) | Represents non-recurring costs related to a fleet fire. |
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