Koil Energy Solutions, Inc. Announces Second Quarter 2024 Results
Rhea-AI Summary
Koil Energy Solutions, Inc. (OTCQB: KLNG) reported strong Q2 2024 results, with significant year-over-year improvements. Revenues increased 65% to $5.8 million, while gross profit nearly doubled to $2.0 million. The company achieved a net income of $1.0 million, a $1.4 million improvement from Q2 2023. Adjusted EBITDA rose to $1.2 million, also a $1.4 million increase year-over-year.
CEO Erik Wiik attributed the success to a proactive growth strategy and strong execution. The company's gross profit margin improved to 39%, up from 33% in Q2 2023. KOIL's financial position strengthened, with working capital increasing to $4.4 million as of June 30, 2024, compared to $2.6 million at the end of 2023. Shareholders' equity grew to $7.2 million, or $0.59 per common share.
AI-generated analysis. Not financial advice.
Positive
- Revenue increased 65% year-over-year to $5.8 million in Q2 2024
- Gross profit nearly doubled to $2.0 million, with margin improving from 33% to 39%
- Net income of $1.0 million, a $1.4 million improvement from Q2 2023
- Adjusted EBITDA rose to $1.2 million, a $1.4 million increase year-over-year
- Working capital increased to $4.4 million as of June 30, 2024
- Shareholders' equity grew to $7.2 million, or $0.59 per common share
Negative
- Cash position decreased from $2.0 million at year-end 2023 to $1.5 million as of June 30, 2024
- Company maintains a factoring arrangement with Amegy Bank Business Credit, with $182 thousand in short-term borrowings
News Market Reaction – KLNG
On the day this news was published, KLNG gained 24.75%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Second Quarter Highlights
- Revenues of
$5.8 million increased65% year-over-year - Gross profit of
$2.0 million increased96% year-over-year - Net income of
$1.0 million increased$1.4 million year-over-year - Adjusted EBITDA of
$1.2 million increased$1.4 million year-over-year
HOUSTON, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Koil Energy Solutions, Inc. (OTCQB: KLNG) (“KOIL”, or the “Company”), a specialist in deepwater production and distribution equipment and services, today reported results for the three and six months ended June 30, 2024.
KOIL at a Glance:
| Share Price†: | Cash*: | |||
| 52-Week Range†: | Book Value*: | |||
| Shares Out.†: | 12.2M | Price / Book Value: | 1.7x | |
| Market Cap†: | TTM Revenue: | |||
| *As of 06/30/24; †As of 08/02/24 | ||||
“We achieved yet another quarter of strong performance underpinned by a proactive growth strategy and exemplary execution,” said Erik Wiik, President and CEO of KOIL. “Compared to the second quarter of last year, revenue grew
“We are very pleased with our results and the progress we have made during the last two quarters. While the recent results are impressive, we are confident that there is further upside as we continue our growth journey.”
“I want to thank our employees for their passion and dedication to supporting our clients in delivering these impressive results.”
Operating Results
KOIL’s revenues for the three months ended June 30, 2024 (“Q2 2024”) increased 65 percent to
Gross profit for Q2 2024 was
Selling, general and administrative expenses (“SG&A”) were
Due to the factors discussed above, KOIL reported Q2 2024 net income of
KOIL reported adjusted EBITDA of
Financial Position
At June 30, 2024, working capital totaled
Conference Call Details
| Call Dial-in: | 1-833-630-1956 for domestic callers |
| 1-412-317-1837 for international callers | |
| Webcast/Replay URL: | https://edge.media-server.com/mmc/p/w3774mtx |
The earnings release and a replay of the conference call will be available on the Company’s website, www.koilenergy.com, under the “Investors” section. An investor presentation will also be posted on our webpage following this press release.
About KOIL (www.koilenergy.com)
KOIL is a leading energy services company offering subsea equipment and support services to the world’s energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, KOIL’s experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.
Forward-Looking Statements
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
Investor Relations:
Trevor Ashurst
ir@koilenergy.com
281-862-2201
| KOIL ENERGY SOLUTIONS, INC. | |||||||||||||||
| SUMMARY FINANCIAL DATA | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Comparative Condensed Consolidated Income Statement | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues | $ | 5,779 | $ | 3,508 | $ | 11,570 | $ | 7,232 | |||||||
| Cost of sales | 3,530 | 2,360 | 7,290 | 4,442 | |||||||||||
| Selling, general and administrative | 1,268 | 1,569 | 2,729 | 3,306 | |||||||||||
| Operating income (loss) | 981 | (421 | ) | 1,551 | (516 | ) | |||||||||
| Total other (income) expense | (5 | ) | 8 | (14 | ) | 9 | |||||||||
| Income (loss) before income tax expense | 986 | (429 | ) | 1,565 | (525 | ) | |||||||||
| Income tax expense | 2 | 4 | 5 | 5 | |||||||||||
| Net income (loss) | $ | 984 | $ | (433 | ) | $ | 1,560 | $ | (530 | ) | |||||
| Net income (loss) per share, basic | $ | 0.08 | $ | (0.04 | ) | $ | 0.13 | $ | (0.04 | ) | |||||
| Weighted-average shares outstanding, basic | 12,188 | 11,888 | 12,147 | 11,888 | |||||||||||
| Comparative Condensed Consolidated Balance Sheets | |||||||||||||||
| June 30, | December 31, | ||||||||||||||
| (In thousands) | 2024 | 2023 | |||||||||||||
| Assets: | |||||||||||||||
| Cash | $ | 1,459 | $ | 2,030 | |||||||||||
| Other current assets | 8,823 | 5,819 | |||||||||||||
| PP&E, net | 2,763 | 2,968 | |||||||||||||
| Other non-current assets | 5,965 | 6,245 | |||||||||||||
| Total assets | $ | 19,010 | $ | 17,062 | |||||||||||
| Liabilities: | |||||||||||||||
| Current liabilities | 5,882 | 5,284 | |||||||||||||
| Other long-term liabilities | 5,897 | 6,160 | |||||||||||||
| Total liabilities | 11,779 | 11,444 | |||||||||||||
| Stockholders' equity | 7,231 | 5,618 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 19,010 | $ | 17,062 | |||||||||||
| KOIL ENERGY SOLUTIONS, INC. | |||||||||||||||
| SUMMARY FINANCIAL DATA, CONTINUED | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Adjusted EBITDA | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $ | 984 | $ | (433 | ) | $ | 1,560 | $ | (530 | ) | |||||
| (Deduct) Add: Interest (income) expense, net | (5 | ) | 2 | (13 | ) | 4 | |||||||||
| Add: Income tax expense | 2 | 4 | 5 | 5 | |||||||||||
| Add: Depreciation and amortization | 149 | 154 | 293 | 306 | |||||||||||
| Add: Share-based compensation | 34 | 16 | 53 | 40 | |||||||||||
| Add (Deduct): Loss (gain) on sale of asset | 3 | (1 | ) | 3 | (2 | ) | |||||||||
| Add: Relocation costs | - | - | - | 9 | |||||||||||
| Adjusted EBITDA | $ | 1,167 | $ | (258 | ) | $ | 1,901 | $ | (168 | ) | |||||
| Cash Flow Data | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Cash provided by (used in): | |||||||||||||||
| Operating activities | $ | (449 | ) | $ | 912 | $ | (756 | ) | $ | 238 | |||||
| Investing activities | (52 | ) | (2 | ) | (62 | ) | (80 | ) | |||||||
| Financing activities | (18 | ) | (82 | ) | 247 | (164 | ) | ||||||||
| Change in cash | $ | (519 | ) | $ | 828 | $ | (571 | ) | $ | (6 | ) | ||||
This press release was published by a CLEAR® Verified individual.
