Business
KLX Energy Services Holdings, Inc. Provides Preliminary Second Quarter 2024 Results
HOUSTON, July 16, 2024 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today announced
About this update from Klx Energy Services Holdings, Inc.
[{"type":"text","content":"HOUSTON, July 16, 2024 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) (\"KLX\", the \"Company\", \"we\", \"us\" or \"our\") today announced preliminary financial results for the three months ended June 30, 2024.\n\nPreliminary Second Quarter 2024 Financial and Operational Highlights\nEstimated Revenue range of $178 million to $182 million, increased sequentially approximately 3% despite a 7% decline in rig count over the same periodEnacted approximately $16 million of annualized cost reductions in the second quarter of 2024 primarily related to operational streamlining initiatives, insurance and professional feesEstimated Net Loss range of $(7) million to $(11) millionEstimated Adjusted EBITDA and Adjusted EBITDA Margin ranges of $24 million to $27 million and 14% to 15%, respectivelyEstimated Adjusted EBITDA and Adjusted EBITDA Margin improved sequentially by 100% to 125% and by 104% to 118%, respectivelyEstimated Net Cash Flow Provided by Operating Activities range of $18 million to $22 millionEstimated Levered Free Cash Flow range of $5 million to $11 millionEstimated Cash balance of approximately $87 million, increased $2 million sequentiallyEstimated Total Debt and Net Debt of approximately $285 million and $198 million, respectivelyEstimated Liquidity of approximately $126 million, including approximately $87 million of cash and $39 million of borrowing availability as of the May 2024 Borrowing Base CertificateSee \"Non-GAAP Financial Measures\" at the end of this release for a discussion of Net Debt, Adjusted EBITDA, Adjusted EBITDA Margin, Net Leverage Ratio and their reconciliations to the most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (\"GAAP\").\nChris Baker, KLX President and Chief Executive Officer, stated, \"We are extremely proud of our second quarter performance. Despite a 7% rig count decline this quarter, and continued drilling and completions activity volatility, KLX revenue results are expected to increase approximately 3% sequentially and Adjusted EBITDA Margin results are materially above our previously provided guidance. We expect to generate second quarter Adjusted EBITDA and Adjusted EBITDA Margin of $24 million to $27 million and 14% and 15% respectively.\n\"Similar to the third quarter of 2023, whe...