- Consolidated revenue for the three months ended March 31, 2020 of $194.4 million increased by 10% from $176.5 million over the same period in 2019 primarily due to a $20.2 million (50%) increase in US fracturing revenue. STEP repositioned its US fracturing equipment during 2019 to the more active Permian and Eagle Ford areas of Texas. The increase in US fracturing revenue was partially offset by a decrease in US coiled tubing revenue that related to the entrance of competitors with deep capacity equipment and the resultant competitive pricing. First quarter 2020, Canadian revenue was largely flat compared to revenue in the first quarter of 2019.
- For the three months ended March 31, 2020, Adjusted EBITDA decreased by $3.8 million to $22.8 million (12%) compared to the same period in 2019. The decrease is attributed to a $2.5 million provision for bad debt and $1.9 million in severance recorded for headcount reductions at the end of March 31, 2020. STEP reduced headcount in response to an expected reduction in activity.
- Without the severance and bad debt expense, STEP would have achieved Adjusted EBITDA of $27.7 million or 14% versus EBITDA of $27.4 million or 16% in the same period of 2019 on an equivalent basis.
- During the first quarter of 2020, the Company recorded a non-cash impairment charge with respect to property and equipment in its Canadian fracturing Cash Generating Unit (“CGU”) of $58.8 million.
- Share-based compensation was a recovery in first quarter 2020 as the expense related to unvested long-term incentive plans was reversed.
- Net loss for the three months ended March 31, 2020 was $52.2 million, compared to net loss of $0.6 million for the same period in 2019. Net loss in first quarter 2020 was primarily the result of the impairment to buildings and field equipment in its Canadian fracturing CGU.
Energy Services Q1 EPS $(0.78) Down From $(0.01), Sales $194.4M Up From $174.5M YoY
Consolidated revenue for the three months ended March 31, 2020 of $194.4 million increased by 10% from $176.5 million over the same period in 2019 primarily due to a $20.2 million (50%) increase in US fracturing
Benzinga · 05/21/2020 11:10