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Mar 31, 2020
Nine Energy Q1 2020 Earnings Report
Nine Energy's Q1 2020 results were announced, revealing a revenue of $146.6 million, a net loss of $(300.9) million, and an adjusted EBITDA of $10.3 million.
Key Takeaways
Nine Energy Service reported a revenue of $146.6 million for Q1 2020. The company experienced a net loss of $(300.9) million, which includes goodwill impairment charges of $296.2 million. Adjusted EBITDA stood at $10.3 million. The company's revenue fell slightly below the original guidance range, while adjusted EBITDA was within the guidance.
Revenue for Q1 2020 was $146.6 million.
Net loss for Q1 2020 was $(300.9) million, including $296.2 million in goodwill impairment charges.
Adjusted EBITDA for Q1 2020 was $10.3 million.
Cash and cash equivalents as of March 31, 2020, were $90.1 million.
Forward Guidance
The company faces an extremely volatile market due to global demand reductions related to the COVID-19 pandemic and a flood of supply. Customers are cutting capex plans, affecting all service lines with revenue and adjusted EBITDA declines.
Positive Outlook
- The company has a strong liquidity position of $183.6 million as of March 31, 2020.
- The liquidity consists of $90.1 million of cash on the balance sheet.
- There is an undrawn ABL credit facility with $93.5 million of availability.
- The company has a sizeable accounts receivable balance of $92.6 million.
- Inventories balance of $63.1 million.
Challenges Ahead
- The energy industry is suffering from significant global demand reductions related to the COVID-19 pandemic.
- There is a flood of supply hitting the market.
- Customers are cutting 2020 capex plans.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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