Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q3 2023 Earnings Presentation
21 slides from Expro's earnings presentation, Oct 26, 2023
Slide 1: Expro Group Holdings N.V. Q3 2023 Highlights
Expro Group Holdings N.V. Q3 | 2023 Highlights NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation 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. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Get to Know XPRO
Get to Know XPRO 60 ~8K TTM REVENUE1 $1,457m COUNTRIES EMPLOYEES Asia Pacific ~$2.4bnMarket Capitalization2 16% North & Latin America ~$2.2bn Middle East North Africa 34% BY 15% REGION STRONG CASH ZERO NET-DEBT Enterprise Value3 FLOW OUTLOOK BALANCE SHEET with significant available liquidity Europe
Slide 4: Q3 2023 Expro Highlights
Q3 2023 Expro Highlights Favorable long-term outlook and strong business momentum despite a challenging quarter Revenue Adjusted EBITDA Full-year Guidance New Contract Awards $370m $50m Revenue Q3 2023 7% Q/Q 31% Q/Q $1,480m - $1,490m Adjusted EBITDA $234m 11% YoY 4% YoY $235m - $245m Order
Slide 5: Updated Adjusted EBITDA Guidance
Updated Adjusted EBITDA Guidance 2023E Adjusted EBITDA Guidance ($m) 2023A Adjusted EBITDA ($m) $325 $42 $72 $50 Q1 2023 Q2 2023 Q3 2023 $275 LWI $245 $164 US Land $235 YTD ($m)1 NLA Well Flow 75- $85 235- $245 Management Other, net NLA Well Construction PRT $ $ Q4 2023 Current Outlook ($m) 2023 Cur
Slide 6: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well Asia Pacific Intervention (APAC) & Integrity $71 North & $57 Latin America (NLA) Well Q3 2023 Q3 2023 Construction $105 Middle East North Africa Revenue1 Revenue1 $116 (MENA) by Geographic by Area of Market Well Flow Capability $58 $370m Management $370m
Slide 7: Q3 2023 Regional Highlights
Q3 2023 Regional Highlights Middle East & North Africa New Surface Well Test contracts for two different operators in Libya. One solution allowed the client to speed up production until an EPF is in place and the second allowed the client to individually test the wells on daily basis. North & Latin
Slide 8: Customer and Technology Highlights
Customer and Technology Highlights The OTC Brazil Spotlight on DeltaTek Cure technology First installation of Kinley Global OWI Awards recognize New Technology Awards range expands to Western check valves using non- Expro’s well intervention Hemisphere explosive technology excellence This award prog
Slide 9: Q4 2023 and 2023 outlook
Q4 2023 2023 Management expects Q4 revenue to Based on Q3 results and activity outlook, we are reflect ~8-10% year-on-year growth, adjusting our 2023 guidance, with revenues with Adjusted EBITDA margin of +20% between $1,480m and $1,490m, Adjusted EBITDA between $235m and $245m and Adjusted EBITDA m
Slide 10: Appendix: Investors.Expro.com
Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Appendix: Subscribe to our To learn even more about Expro, check out these additional places to get in touch with us. channel
Slide 11: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)2 Revenue up 48% LWI-related unrecoverablercosts2 Adjusted EBITDA since Q4 2020 up ~2.0x since Q4 2020 $397 $374 $370 $348$342 $351 $78 $334 $339 $75 $326 $330 $313 $314 $144 $116 $139 $296 $65 $66 $284 $280 $138 $156 $139 $129
Slide 12: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA / Capital Expenditures ($m)3 Adjusted EBITDA Capital Expenditures TTM Adjusted EBITDA minus Capex up LWI-related ~$145m since Q4 2020 unrecoverable costs3 $99 $78 $75 $65 $66 $73 $55 $66
Slide 13: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $397 $397 $374 $370 $374 $370 $65 $54 $348 $342 $351 $351 $339 $348 $342 $42 $56 $334 $334 $339
Slide 14: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 42% 45% 42% 44% 42% 43% 44% 45% 43% 43% 43% 50% 41% 41% 42% 41% 42% $60 38% 40% 37% 40% $50 $397 $40 30% $374 $370 $30 20% $348$342 $351 $334 $339 $20 $326 $330 $313 $314 $144 $10 10% $116 $59 $66 $63
Slide 15: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) $70 42% 45% 50% 43% 40% 41% 44% 42% 43% 44% 45% 43% 43% 43% $60 39% 38% 36% 38% 39% 38% 45% 41% 42% 41% 42% 41% 42% 36% 36% 38% 38% 37% 34% $60 38% 40% 37% $50 34% 35% 33% 33% 40% 35% $50 $40 30% 25% $40 $30 $30
Slide 16: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $45 35% $45 35% 30% 30% 29% $40 27% $40 27% 30% 26% 26% 30% 25% $35 25% $35 23% 23% 21% 21% 21% 25% 22% 21% 25% $30 $30 19% 19% 19% 18% 18% 18% 18% $25 16% 15% 15% 15% 20% $25 17% 16% 20% 15% 15% 15% 14%
Slide 17: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) TTM support $103 $102 Research, engineering and development costs relatively $101 $101 Aggregate support flat with run-rate Product Line and central costs revenue up 19% $6 $6 costs since Q4 2020 $6 $8 $
Slide 18: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) $2,413 $2,295 $2,271 + $2,178 + + $1,927 $1,878 $1,744 1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 1) “Other” includes revenue from backlog and re-estimations. Copyright 2023 Expro. All rights reserved. A-
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q3 2023 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72 $ 50 $
Slide 20: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three Months Ended TTM ($ in millions) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351
Slide 21: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6) $ 9