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ChampionX
🇺🇸 NASDAQ:CHX
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•
Jun 30, 2020

ChampionX Q2 2020 Earnings Report

ChampionX's second quarter was marked by revenue of $298.9 million and a net loss attributable to ChampionX of $109.6 million.

Key Takeaways

ChampionX Corporation reported second-quarter results, which included revenue of $298.9 million and a net loss attributable to ChampionX of $109.6 million. Adjusted EBITDA was $34.5 million. The company highlighted the integration of legacy Apergy and legacy ChampionX is on track, expecting annualized run-rate synergies towards the high-end of the previously announced $25 to $35 million exiting 2020.

Revenue of $298.9 million in Q2-20

Net loss attributable to ChampionX of $109.6 million in Q2-20

Adjusted EBITDA of $34.5 million in Q2-20

Cash from operating activities of $48.8 million and free cash flow of $37.0 million, or 12% of revenue in Q2-20

Total Revenue
$299M
Previous year: $306M
-2.4%
EPS
-$0.43
Previous year: $0.3
-243.3%
Gross Profit
$32.2M
Previous year: $110M
-70.6%
Cash and Equivalents
$142M
Previous year: $24.3M
+483.1%
Free Cash Flow
$37M
Previous year: $26.4M
+39.9%
Total Assets
$3.52B
Previous year: $1.98B
+78.2%

ChampionX

ChampionX

ChampionX Revenue by Segment

Forward Guidance

ChampionX anticipates a modest sequential increase in revenue and adjusted EBITDA, driven by production-focused segments. Drilling Technologies revenue is expected to decrease sequentially.

Positive Outlook

  • Expect to see a modest sequential increase in revenue due to operators bringing production back on-line within production-focused segments.
  • Expect a modest sequential increase in revenue and adjusted EBITDA on a consolidated basis.
  • Integration is on-track and implementing plans to capture the $75 million in cost synergies within 24 months of closing, as well as drive additional revenue growth opportunities.
  • Expect to be at the higher end of the previously announced $25 to $35 million of run rate cost synergies exiting 2020.
  • Continue to maintain a strong balance sheet and generate positive free cash flow.

Challenges Ahead

  • Visibility remains challenging due to the uncertainty caused by the COVID pandemic
  • Drilling Technologies revenue is expected to decrease sequentially, driven by continued low drilling activity in the third quarter.
  • Seasonal impacts of holidays and E&P capital budget exhaustion are unclear at this time for the fourth quarter.
  • Rapid reduction in worldwide E&P capital spending.
  • Expect that sales of digital hardware equipment will continue to be impacted by reduced E&P capital spending.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View ChampionX