Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ☐
On August 5, 2026, Nine Energy Service, Inc. issued
a press release providing information on its results of operations and financial condition for the quarter ended June 30, 2026. The press
release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 and in Exhibit
99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into
any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such
filing, except as shall be expressly set forth by specific reference in such filing.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Exhibit
99.1
Nine
Energy Service Announces Second Quarter 2026 Results
| ● | Revenue,
net loss and adjusted EBITDAA of $141.8 million, $(4.9) million and $8.6 million,
respectively, for the second quarter of 2026 |
| ● | Total
liquidity as of June 30, 2026 of $46.8 million |
HOUSTON
– Nine Energy Service, Inc. (“Nine” or the “Company”) (NYSE American: NINE) reported second quarter
2026 revenues of $141.8 million, net loss of $(4.9) million, or $(0.35) per diluted share and $(0.35) per basic share, and adjusted EBITDA
of $8.6 million.
“Second
quarter revenue increased sequentially and was within our previously provided guidance range; however, adjusted EBITDA was below our
guidance range,” said Ann Fox, President and Chief Executive Officer of Nine Energy Service. “While industry activity improved
modestly during the second quarter, our profitability was negatively impacted by significant margin compression within our Coiled Tubing
business. During the quarter, two of our large-diameter coiled tubing units, representing approximately 17% of our large diameter fleet,
were taken out of service due to maintenance-related issues. At the same time, we experienced meaningful inflationary pressures across
several cost categories, including consumables, labor, and repairs and maintenance.”
“One
of the affected units returned to service early in the third quarter, while the second unit remains under repair and is currently expected
to return near year-end. As a result, we anticipate our Coiled Tubing operations will remain constrained until that unit is restored
to service.”
“Our
Completion Tools business delivered a strong quarter, supported by increased domestic sales and continued growth in international markets.
We also continue to make meaningful progress commercializing our new technologies, and demand for our dissolvable solutions is increasing
as operators extend lateral lengths. These trends reinforce our confidence in the long-term growth opportunities across our dissolvable
offering.”
“Cementing
remained a steady contributor despite uneven activity levels; however, this business also experienced inflationary cost pressures during
the second quarter related to materials and labor, negatively impacting margins. In Wireline, we are making steady progress executing
our expansion in the Haynesville Basin.”
“The
macro backdrop remains uncertain, particularly given recent geopolitical events. We expect the average U.S. rig count during the third
quarter to be relatively flat to slightly up compared to the second quarter of this year.”
“With
the sustained revenue loss from our damaged coiled tubing unit, combined with persistent cost inflation across service lines, we anticipate
third-quarter revenue and profitability to be flat to modestly down compared to the second quarter.”
“Despite
these near-term challenges, we believe the underlying fundamentals of the business remain intact. Our focus continues to be on operational
execution, cost discipline, and expanding the adoption of our differentiated technologies. Supported by a stronger balance sheet, a growing
technology portfolio, and an excellent team, we remain confident in the long-term value potential of Nine.”
Operating
Results
During
the second quarter of 2026, the Company reported revenues of $141.8 million, gross profit of $12.8 million and adjusted gross profitB
of $19.9 million.
During
the second quarter of 2026, the Company reported general and administrative (“G&A”) expense of $15.6 million. Depreciation
and amortization expense (“D&A”) in the second quarter of 2026 was $7.2 million.
The
Company’s tax provision for the second quarter was approximately $0.4 million, primarily attributed to state and non-U.S. jurisdictions.
Liquidity
and Capital Expenditures
During
the second quarter of 2026, the Company reported net cash used in operating activities of $2.3 million. Capital expenditures totaled
$4.8 million during the second quarter of 2026. Capital expenditures totaled $1.9 million for the period from January 1, 2026 through
March 5, 2026 and $3.7 million for the period from March 6, 2026 through March 31, 2026.1 The Company’s full-year 2026
capital expenditures guidance is unchanged at $20 to $30 million. As of June 30, 2026, Nine’s cash and cash equivalents were $16.8
million, and the Company had $30.0 million of availability under its revolving credit facility, resulting in a total liquidity position
of $46.8 million as of June 30, 2026. On June 30, 2026, the Company had $97.3 million of borrowings under its revolving credit facility.
ABSee
end of press release for definitions of these non-GAAP measures. These measures are intended to provide additional information only and
should not be considered as alternatives to, or more meaningful than, net income (loss), gross profit or any other measure determined
in accordance with GAAP. Certain items excluded from these measures are significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets.
Our computation of these measures may not be comparable to other similarly titled measures of other companies.
| 1 | On
March 5, 2026 (the “Plan Effective Date”), the Company emerged from bankruptcy,
and in connection therewith, the Company applied fresh start accounting on such date. The
application of fresh start accounting resulted in a new basis of accounting and the Company
becoming a new entity for financial reporting purposes, which is referred to as the “Successor.”
The Company prior to the application of fresh start account is referred to as the “Predecessor.”
With the application of fresh start accounting, the Company allocated its reorganization
value to its individual assets based on their estimated fair value. The Plan Effective Date fair
values of the Successor’s assets and liabilities differ materially from their recorded
values as reflected on the historical balance sheet of the Predecessor. Accordingly, the
Predecessor and Successor financial information are not comparable. For additional information
on the Company’s application of fresh start accounting, see Note 3 – Emergence
from Bankruptcy in Item 1 of Part I of the Company’s Quarterly Report on Form 10-Q
for the quarterly period ended June 30, 2026. |
Conference
Call Information
The
call is scheduled for Thursday, August 6, 2026, at 9:00 am Central Time. Participants may join the live conference call by dialing
U.S. (Toll Free): (888) 396-8049 or International: (416) 764-8646 and asking for the “Nine Energy Service Earnings Call”.
Participants are encouraged to dial into the conference call ten to fifteen minutes before the scheduled start time to avoid any delays
entering the earnings call.
For
those who cannot listen to the live call, a telephonic replay of the call will be available through August 20, 2026, and may be accessed
by dialing U.S. (Toll Free): (877) 660-6853 or International: (201) 612-7415 and enter passcode 13761720.
About
Nine Energy Service
Nine
Energy Service is an oilfield services company that offers completion solutions within North America and abroad. The Company brings years
of experience with a deep commitment to serving clients with smarter, customized solutions and world-class resources that drive efficiencies.
Serving the global oil and gas industry, Nine continues to differentiate itself through superior service quality, wellsite execution
and cutting-edge technology. Nine is headquartered in Houston, Texas with operating facilities in the Permian, Eagle Ford, Haynesville,
SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus, Utica and Canada.
For
more information on the Company, please visit Nine’s website at nineenergyservice.com.
Forward
Looking Statements
The
foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently
subject to risks and uncertainties. Forward-looking statements also include statements that refer to or are based on projections, uncertain
events or assumptions. Forward-looking statements included herein relate to, among other things, our strategy and prospects, future operations,
financial position and financial results, estimated future revenues and earnings. All forward-looking statements included herein are
based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those
forward-looking statements. Such risks and uncertainties include, among other things, the level of capital spending and well completions
by the onshore oil and natural gas industry, which may be affected by geopolitical and economic developments in the U.S. and globally,
including conflicts, instability, acts of war or terrorism in oil-producing countries or regions, particularly Iran and elsewhere in
the Middle East, Russia, South America and Africa, as well as actions by members of the Organization of the Petroleum Exporting Countries
and other oil-exporting nations; general economic conditions and inflation, particularly cost inflation with labor or materials; the
effects of tariffs and other trade measures on the Company’s business and on the onshore oil and natural gas industry generally;
equipment and supply chain constraints; the Company’s ability to attract and retain key employees, technical personnel and other
skilled and qualified workers; the Company’s ability to maintain existing prices or implement price increases on our products and
services; pricing pressures, reduced sales or reduced market share as a result of intense competition in the markets for the Company’s
dissolvable plug products; conditions inherent in the oilfield services industry, such as equipment defects, liabilities arising from
accidents or damage involving our fleet of trucks or other equipment, explosions and uncontrollable flows of gas or well fluids, and
loss of well control; the Company’s ability to implement and commercialize new technologies, services and tools; the Company’s
ability to grow its completion tool business domestically and internationally; our recent emergence from bankruptcy, which may adversely
affect our business and relationships; seasonal and adverse weather conditions; the adequacy of the Company’s capital resources
and liquidity, including the ability to meet its debt obligations; the Company’s ability to manage capital expenditures; the Company’s
ability to accurately predict customer demand, including that of its international customers; the loss of, or interruption or delay in
operations by, one or more significant customers, including certain of the Company’s customers outside of the United States; the
loss of or interruption in operations of one or more key suppliers; the incurrence of significant costs and liabilities resulting from
litigation; cybersecurity risks; changes in laws or regulations regarding issues of health, safety and protection of the environment;
and other factors described in the “Risk Factors” and “Business” sections of the Company’s most recently
filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned
not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the
Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements
to reflect future events or developments.
Nine
Energy Service Investor Contact:
Josh
Riley
Senior Vice President, Corporate Finance and Investor Relations
(281) 730-5100
investors@nineenergyservice.com
NINE
ENERGY SERVICE, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(In
Thousands, Except Share and Per Share Amounts)
(Unaudited)
| | |
Successor | | |
Predecessor | |
| | |
Three
Months
Ended
June 30,
2026 | | |
Period
from
March 6,
2026
through
March 31,
2026 | | |
Period
from
January 1,
2026
through
March 5,
2026 | |
| | |
| | |
| | |
| |
| Revenues | |
$ | 141,806 | | |
$ | 41,603 | | |
$ | 88,392 | |
| Cost
and expenses | |
| | | |
| | | |
| | |
| Cost
of revenues (exclusive of depreciation and amortization shown separately below) | |
| 121,866 | | |
| 35,600 | | |
| 80,546 | |
| General and administrative
expenses | |
| 15,609 | | |
| 4,623 | | |
| 13,052 | |
| Depreciation | |
| 7,038 | | |
| 2,205 | | |
| 3,963 | |
| Amortization of intangibles | |
| 205 | | |
| 68 | | |
| 1,984 | |
| Gain
on sale of property and equipment | |
| (23 | ) | |
| (37 | ) | |
| (147 | ) |
| Loss
from operations | |
| (2,889 | ) | |
| (856 | ) | |
| (11,006 | ) |
| Interest expense | |
| 1,878 | | |
| 542 | | |
| 5,256 | |
| Interest income | |
| (99 | ) | |
| (1 | ) | |
| (82 | ) |
| Reorganization items, net | |
| — | | |
| — | | |
| (124,059 | ) |
| Other
income | |
| (162 | ) | |
| (53 | ) | |
| (109 | ) |
| Income
(loss) before income taxes | |
| (4,506 | ) | |
| (1,344 | ) | |
| 107,988 | |
| Provision
(benefit) for income taxes | |
| 384 | | |
| (91 | ) | |
| 109 | |
| Net
income (loss) | |
$ | (4,890 | ) | |
$ | (1,253 | ) | |
$ | 107,879 | |
| | |
| | | |
| | | |
| | |
| Income (loss) per share | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.35 | ) | |
$ | (0.09 | ) | |
$ | 2.65 | |
| Diluted | |
$ | (0.35 | ) | |
$ | (0.09 | ) | |
$ | 2.65 | |
| Weighted average shares
outstanding | |
| | | |
| | | |
| | |
| Basic | |
| 13,949,990 | | |
| 13,949,990 | | |
| 40,650,388 | |
| Diluted | |
| 13,949,990 | | |
| 13,949,990 | | |
| 40,659,260 | |
| | |
| | | |
| | | |
| | |
| Other
comprehensive loss (income), net of tax | |
| | | |
| | | |
| | |
| Foreign
currency translation adjustments, net of tax of $0 and $0 | |
$ | (96 | ) | |
$ | 32 | | |
$ | 158 | |
| Total
other comprehensive income (loss), net of tax | |
| (96 | ) | |
| 32 | | |
| 158 | |
| Total
comprehensive income (loss) | |
$ | (4,986 | ) | |
$ | (1,221 | ) | |
$ | 108,037 | |
NINE
ENERGY SERVICE, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
Thousands)
(Unaudited)
| | |
Successor | | |
Successor | |
| | |
June
30,
2026 | | |
March
31,
2026 | |
| | |
| | |
| |
| Assets | |
| | | |
| | |
| Current
assets | |
| | | |
| | |
| Cash
and cash equivalents | |
$ | 16,849 | | |
$ | 11,249 | |
| Restricted
cash | |
| 1,400 | | |
| 10,616 | |
| Accounts
receivable, net | |
| 91,599 | | |
| 88,270 | |
| Inventories,
net | |
| 48,769 | | |
| 50,550 | |
| Prepaid
expenses | |
| 11,307 | | |
| 12,106 | |
| Other
current assets | |
| 1,375 | | |
| 2,064 | |
| Total
current assets | |
| 171,299 | | |
| 174,855 | |
| Property
and equipment, net | |
| 106,572 | | |
| 109,013 | |
| Operating
lease right-of-use assets, net | |
| 30,293 | | |
| 32,482 | |
| Finance
lease right-of-use assets, net | |
| 36 | | |
| 52 | |
| Intangible
assets, net | |
| 8,898 | | |
| 9,103 | |
| Other
long-term assets | |
| 557 | | |
| 535 | |
| Total
assets | |
$ | 317,655 | | |
$ | 326,040 | |
| Liabilities
and Stockholders’ Equity (Deficit) | |
| | | |
| | |
| Current
liabilities | |
| | | |
| | |
| Accounts
payable | |
$ | 44,448 | | |
$ | 41,453 | |
| Accrued
expenses | |
| 13,927 | | |
| 23,662 | |
| Income
taxes payable | |
| 381 | | |
| 374 | |
| Current
portion of long-term debt | |
| 1,606 | | |
| 3,978 | |
| Current
portion of operating lease obligations | |
| 12,695 | | |
| 12,454 | |
| Current
portion of finance lease obligations | |
| 37 | | |
| 50 | |
| Total
current liabilities | |
| 73,094 | | |
| 81,971 | |
| Long-term
liabilities | |
| | | |
| | |
| Long-term
debt | |
| 97,344 | | |
| 90,439 | |
| Long-term
operating lease obligations | |
| 17,188 | | |
| 19,602 | |
| Other
long-term liabilities | |
| 459 | | |
| 45 | |
| Total
liabilities | |
| 188,085 | | |
| 192,057 | |
| | |
| | | |
| | |
| Stockholders’
equity (deficit) | |
| | | |
| | |
| Successor
common stock (70,000,000 shares authorized at $0.01 par value; 13,949,990 and 13,949,990 shares issued and outstanding at June 30,
2026 and March 31, 2026, respectively) | |
| 139 | | |
| 139 | |
| Additional
paid-in capital | |
| 135,638 | | |
| 135,065 | |
| Accumulated
other comprehensive income (loss) | |
| (64 | ) | |
| 32 | |
| Accumulated
deficit | |
| (6,143 | ) | |
| (1,253 | ) |
| Total
stockholders’ equity | |
| 129,570 | | |
| 133,983 | |
| Total
liabilities and stockholders’ equity | |
$ | 317,655 | | |
$ | 326,040 | |
NINE
ENERGY SERVICE, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
Thousands)
(Unaudited)
| | |
Successor | | |
Predecessor | |
| | |
Three
Months
Ended
June 30,
2026 | | |
Period
from
March 6,
2026
through
March 31,
2026 | | |
Period
from
January 1,
2026
through
March 5,
2026 | |
| | |
| | |
| | |
| |
| Cash
flows from operating activities | |
| | |
| | |
| |
| Net
income (loss) | |
$ | (4,890 | ) | |
$ | (1,253 | ) | |
$ | 107,879 | |
| Adjustments
to reconcile net income (loss) to net cash used in operating activities | |
| | | |
| | | |
| | |
| Depreciation | |
| 7,038 | | |
| 2,205 | | |
| 3,963 | |
| Amortization
of intangibles | |
| 205 | | |
| 68 | | |
| 1,984 | |
| Amortization
of deferred financing costs and non-cash interest | |
| 1,905 | | |
| 134 | | |
| 2,421 | |
| Amortization
of operating leases | |
| 3,618 | | |
| 1,048 | | |
| 2,930 | |
| Provision
for doubtful accounts | |
| 4 | | |
| — | | |
| 82 | |
| Provision
for inventory obsolescence | |
| 203 | | |
| — | | |
| 2,462 | |
| Stock-based
compensation expense | |
| 573 | | |
| — | | |
| 1,890 | |
| Gain
on sale of property and equipment | |
| (23 | ) | |
| (37 | ) | |
| (147 | ) |
| Non-cash
reorganization items, net | |
| — | | |
| — | | |
| (139,231 | ) |
| Changes
in operating assets and liabilities, net of effects from acquisitions | |
| | | |
| | | |
| | |
| Accounts
receivable, net | |
| (3,343 | ) | |
| (9,163 | ) | |
| (3,211 | ) |
| Inventories,
net | |
| 1,554 | | |
| (183 | ) | |
| 2,059 | |
| Prepaid
expenses and other current assets | |
| 1,488 | | |
| 17 | | |
| 1,658 | |
| Accounts
payable and accrued expenses | |
| (7,426 | ) | |
| 5,176 | | |
| 8,883 | |
| Income
taxes receivable/payable | |
| 13 | | |
| (91 | ) | |
| 109 | |
| Operating
lease obligations | |
| (3,606 | ) | |
| (296 | ) | |
| (3,674 | ) |
| Other
assets and liabilities | |
| 391 | | |
| (41 | ) | |
| (8 | ) |
| Net
cash used in operating activities | |
| (2,296 | ) | |
| (2,416 | ) | |
| (9,951 | ) |
| Cash
flows from investing activities | |
| | | |
| | | |
| | |
| Proceeds
from sales of property and equipment | |
| 182 | | |
| 15 | | |
| 286 | |
| Proceeds
from property and equipment casualty losses | |
| — | | |
| 25 | | |
| 628 | |
| Purchases
of property and equipment | |
| (4,057 | ) | |
| (3,482 | ) | |
| (2,950 | ) |
| Net
cash used in investing activities | |
| (3,875 | ) | |
| (3,442 | ) | |
| (2,036 | ) |
| Cash
flows from financing activities | |
| | | |
| | | |
| | |
| Proceeds
from Prepetition ABL Facility | |
| — | | |
| — | | |
| 3,000 | |
| Payments
on Prepetition ABL Facility | |
| — | | |
| — | | |
| (67,349 | ) |
| Proceeds
from DIP ABL Facility | |
| — | | |
| — | | |
| 79,495 | |
| Payments
of DIP ABL Facility | |
| — | | |
| — | | |
| (82,568 | ) |
| Proceeds
from Exit ABL Facility | |
| 5,000 | | |
| — | | |
| 89,479 | |
| Proceeds
from short-term debt | |
| — | | |
| — | | |
| — | |
| Payments
of short-term debt | |
| (2,372 | ) | |
| (782 | ) | |
| (1,550 | ) |
| Principal
payments on finance leases | |
| (13 | ) | |
| (5 | ) | |
| (11 | ) |
| Net
cash provided by (used in) financing activities | |
| 2,615 | | |
| (787 | ) | |
| 20,496 | |
| Impact
of foreign currency exchange on cash | |
| (60 | ) | |
| 70 | | |
| 89 | |
| Net
(decrease) increase in cash, cash equivalents, and restricted cash | |
| (3,616 | ) | |
| (6,575 | ) | |
| 8,598 | |
| Cash,
cash equivalents, and restricted cash | |
| | | |
| | | |
| | |
| Beginning
of period | |
| 21,865 | | |
| 28,440 | | |
| 19,842 | |
| End
of period | |
$ | 18,249 | | |
$ | 21,865 | | |
$ | 28,440 | |
NINE
ENERGY SERVICE, INC.
RECONCILIATION
OF ADJUSTED EBITDA
(In
Thousands)
(Unaudited)
| | |
Successor | | |
Predecessor | |
| | |
Three
Months
Ended
June 30,
2026 | | |
Period
from
March 6,
2026
through
March 31,
2026 | | |
Period
from
January 1,
2026
through
March 5,
2026 | |
| Net income
(loss) | |
$ | (4,890 | ) | |
$ | (1,253 | ) | |
$ | 107,879 | |
| Interest expense | |
| 1,878 | | |
| 542 | | |
| 5,256 | |
| Interest income | |
| (99 | ) | |
| (1 | ) | |
| (82 | ) |
| Depreciation | |
| 7,038 | | |
| 2,205 | | |
| 3,963 | |
| Amortization of intangibles | |
| 205 | | |
| 68 | | |
| 1,984 | |
| Provision
(benefit) for income taxes | |
| 384 | | |
| (91 | ) | |
| 109 | |
| EBITDA | |
$ | 4,516 | | |
$ | 1,470 | | |
$ | 119,109 | |
| Reorganization items, net | |
| — | | |
| — | | |
| (125,640 | ) |
| Restructuring charges and
other expenses (1) | |
| 2,714 | | |
| 555 | | |
| 5,408 | |
| Stock-based compensation | |
| 573 | | |
| — | | |
| 1,890 | |
| Cash award expense | |
| 814 | | |
| 121 | | |
| 250 | |
| Gain
on sale of property and equipment | |
| (23 | ) | |
| (37 | ) | |
| (147 | ) |
| Adjusted
EBITDA | |
$ | 8,594 | | |
$ | 2,109 | | |
$ | 870 | |
| (1) | For
the three months ended June 30, 2026, amounts related to professional fees incurred after
the Plan Effective Date in relation to the Chapter 11 Cases as well as other costs associated
with restructuring initiatives. For the period from March 6, 2026 through March 31, 2026,
amounts related to professional fees incurred after the Plan Effective Date in relation to
the Chapter 11 Cases. For the period from January 1, 2026 through March 5, 2026, amounts
related to professional fees incurred prior to the Petition Date in relation to the Chapter
11 Cases. |
NINE
ENERGY SERVICE, INC.
RECONCILIATION
OF ADJUSTED GROSS PROFIT (LOSS)
(In
Thousands)
(Unaudited)
| |
|
Successor |
|
|
Predecessor |
|
| |
|
Three
Months
Ended
June 30,
2026 |
|
|
Period
from
March 6,
2026
through
March 31,
2026 |
|
|
Period
from
January 1,
2026
through
March 5,
2026 |
|
| Calculation
of gross profit: |
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ |
141,806 |
|
|
$ |
41,603 |
|
|
$ |
88,392 |
|
| Cost of revenues (exclusive
of depreciation and amortization shown separately
below) |
|
|
121,866 |
|
|
|
35,600 |
|
|
|
80,546 |
|
| Depreciation (related to
cost of revenues) |
|
|
6,901 |
|
|
|
2,162 |
|
|
|
3,886 |
|
| Amortization
of intangibles |
|
|
205 |
|
|
|
68 |
|
|
|
1,984 |
|
| Gross
profit |
|
$ |
12,834 |
|
|
$ |
3,773 |
|
|
$ |
1,976 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
gross profit reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
$ |
12,834 |
|
|
$ |
3,773 |
|
|
$ |
1,976 |
|
| Depreciation (related to
cost of revenues) |
|
|
6,901 |
|
|
|
2,162 |
|
|
|
3,886 |
|
| Amortization
of intangibles |
|
|
205 |
|
|
|
68 |
|
|
|
1,984 |
|
| Adjusted
gross profit |
|
$ |
19,940 |
|
|
$ |
6,003 |
|
|
$ |
7,846 |
|
AAdjusted
EBITDA is defined as EBITDA (which is net income (loss) before interest, taxes, and depreciation and amortization) further adjusted for
(i) goodwill, intangible asset, and/or property and equipment impairment charges, (ii) transaction and integration costs related to acquisitions,
(iii) loss or gain on revaluation of contingent liabilities, (iv) loss or gain on the extinguishment of debt, (v) loss or gain on the
sale of subsidiaries, (vi) restructuring charges, (vii) stock-based compensation and certain cash award expense, (viii) loss or gain
on sale of property and equipment, and (ix) other expenses or charges to exclude certain items which we believe are not reflective of
ongoing performance of our business, such as legal expenses and settlement costs related to litigation outside the ordinary course of
business. Management believes adjusted EBITDA provides useful information to us and our investors regarding our financial condition and
results of operations because it allows us and them to more effectively evaluate our operating performance and compare the results of
our operations from period to period without regard to our financing methods or capital structure and helps identify underlying trends
in our operations that could otherwise be distorted by the effect of impairments, acquisitions and dispositions and costs that are not
reflective of the ongoing performance of our business.
BAdjusted
gross profit (loss) is defined as revenues less cost of revenues excluding depreciation and amortization. This measure differs from the
GAAP definition of gross profit (loss) because we do not include the impact of depreciation and amortization, which represent non-cash
expenses. Management believes adjusted gross profit (loss) provides useful information to us and our investors regarding our financial
condition and results of operation and helps management evaluate our operating performance by eliminating the impact of depreciation
and amortization, which we do not consider indicative of our core operating performance.
