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Sep 30, 2022
KLX Energy Services Q3 2022 Earnings Report
Reported record results since the merger due to increased demand and pricing for services, driven by a constructive market despite commodity price volatility.
Key Takeaways
KLX Energy Services Holdings, Inc. reported strong third-quarter results with a 20% sequential increase in revenue to $221.6 million. Net income was $11.1 million, with EPS of $0.96 per share. Adjusted EBITDA increased by 113% sequentially to $37.1 million, representing a 16.7% margin. The company generated $18.5 million in net cash flow from operating activities and ended the quarter with $41.4 million in cash.
Revenue of $221.6 million, increased 20% sequentially.
Net income of $11.1 million, a $18.6 million sequential increase, and EPS of $0.96/share.
Adjusted EBITDA of $37.1 million, a 113% sequential increase.
Generated $18.5 million in net cash flow provided by operating activities, a $26.9 million sequential increase.
KLX Energy Services
KLX Energy Services
KLX Energy Services Revenue by Segment
Revenue by Segment
Rocky Mountains Revenue
CapyFin.comSouthwest Revenue
CapyFin.comNortheast/Mid-Con Revenue
CapyFin.com Forward Guidance
The company expects a seasonally strong fourth quarter with flat to slightly up sequential revenue and an Adjusted EBITDA margin of 15% to 17%.
Positive Outlook
- Continued strength in commodity prices.
- Operator reluctance to relinquish efficient service providers.
- Transition from 2022 programs to 2023 programs.
- Favorable macro backdrop.
- Net pricing improvements.
Challenges Ahead
- Product line mix shifts.
- Typical seasonality.
- Transitory regulatory events in the Rocky Mountains.
- Regulatory events to a lesser extent in the Northeast.
- Ever-volatile commodity price backdrop
Revenue & Expenses
Visualization of income flow from segment revenue to net income