Business
ProFrac Holding Corp. Reports Second Quarter 2023 Financial and Operational Results
WILLOW PARK, Texas, Aug. 10, 2023 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac", or the "Company") today announced financial and operational
About this update from Profrac Holding Corp.
[{"type":"text","content":"WILLOW PARK, Texas, Aug. 10, 2023 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) (\"ProFrac\", or the \"Company\") today announced financial and operational results for its second quarter ended June 30, 2023. \nSecond Quarter 2023 Results and Recent Highlights\nTotal revenue was $709.2 million compared to $857.5 million in the first quarter of 2023 Net loss was ($4.6) million compared to net income of $59.8 million in the first quarter of 2023Adjusted EBITDA(1) was $182.5 millionGenerated $55.6 million of free cash flow and reduced indebtedness by $85.6 millionRight-sized active fleet count in June and again in August to optimize calendar efficiencies and reduce costsMatt Wilks, ProFrac's Executive Chairman, stated, \"Our second quarter results were challenged as a result of customer consolidation, coordination with customer capital expenditure schedules, and the impacts of the recent banking crisis on private operators. We have adjusted our cost structure to right size our organization, through the acceleration of acquisition synergies and headcount reductions. Most of these reductions will be reflected in the third quarter.\n\"We expect to see our mining assets grow sales and expand our customer footprint. We're pleased to see improving industry fundamentals and disciplined behavior from our peers, which support a constructive outlook for the second half of 2023. \n\"We continue to remain focused on maximizing utilization and profitability and adapting our cost structure to further improve our cash flow.\n\"We strongly believe that our vertical integration strategy differentiates us and results in the potential for strong cash flow generation,\" continued Wilks. \"We believe the biggest value driver is diversifying our proppant segment customer base to further demonstrate our strong cash flow potential.\"\nSecond Quarter 2023 Financial Results\nFor the second quarter of 2023, consolidated revenues totaled $709.2 million, down approximately 17% sequentially. The decrease was driven primarily by a lower average active fleet count and associated material sales, when compared to the first quarter of 2023.\nSelling, general, and administrative costs were $70.3 million in the second quarter, of which $4.3 million was related to Flotek and $9.8 million was related to stock-based compensation. \nNet loss for the second quarter w...