Business
KLX ENERGY SERVICES HOLDINGS, INC. REPORTS THIRD QUARTER 2023 RESULTS
Diversification drives flat sequential margins and continued strong operating cash flow, despite 10% sequential decline in rig count HOUSTON, Nov. 6, 2023
About this update from Klx Energy Services Holdings, Inc.
[{"type":"text","content":"Diversification drives flat sequential margins and continued strong operating cash flow, despite 10% sequential decline in rig count\nHOUSTON, Nov. 6, 2023 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) (\"KLX\", the \"Company\", \"we\", \"us\" or \"our\") today reported financial results for the third quarter ended September 30, 2023.\n\nThird Quarter 2023 Financial and Operational Highlights\nRevenue of $221 millionNet income of $8 million, net income margin of 3%, diluted earnings per share of $0.47Adjusted net income of $8 million and adjusted diluted earnings per share of $0.51Adjusted EBITDA of $37 millionAdjusted EBITDA margin of 17%Cash balance of $90 million, increased $8 million sequentially and $49 million compared to Q3 2022Ended the quarter with $155 million of liquidity, consisting of $90 million of cash and $65 million of available borrowing capacity under the September 2023 asset-based revolving credit facility (the \"ABL Facility\") borrowing base certificateEnded the quarter with a total debt balance of $284 million and reduced net debt 4% sequentially, ending the quarter with a net debt balance of $194 million and a Last Twelve Months Net Leverage Ratio of 1.3xSuccessfully integrated Greene's and fully implemented $3 million in annual cost synergiesExecuted 12-month frac contract with leading operator base loading 2024 activityLaunched and commercialized latest generation downhole tools and productsSee \"Non-GAAP Financial Measures\" at the end of this release for a discussion of adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) margin, adjusted diluted earnings per share, levered and unlevered free cash flow, net working capital, net debt, net leverage ratio and their reconciliation to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (\"GAAP\"). We have not provided reconciliations of our future expectations as to adjusted EBITDA or adjusted EBITDA margin as such reconciliation is not available without unreasonable efforts.\nChris Baker, KLX President and Chief Executive Officer, stated, \"We are very pleased with our third quarter results. Our teams did an exceptional job of managing costs, maintaining price and maximizing utilization as we managed forces ou...