KLX ENERGY SERVICES HOLDINGS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS – KLX Energy Services Hldgs (NASDAQ:KLXE)

HOUSTON, March 12, 2025 /PRNewswire/ — KLX Power Providers Holdings, Inc. KLXE (“KLX”, the “Firm”, “we”, “us” or “our”) right this moment reported monetary outcomes for the fourth quarter ended December 31, 2024.

Full 12 months 2024 Monetary Highlights

• Income of $709 million
• Web lack of $(53) million, internet loss margin of (7)% and diluted loss per share of $(3.27)
• Adjusted EBITDA of $90 million
• Adjusted EBITDA margin of 13%
• Subsequent to 12 months finish, KLX closed on refinancing its current 2025 senior secured notes and closed on a brand new ABL credit score facility

Fourth Quarter 2024 Monetary Highlights

• Income of $166 million
• Web lack of $(15) million, internet loss margin of (9)% and diluted loss per share of $(0.90)
• Adjusted EBITDA of $23 million and Adjusted EBITDA margin of 14%

See “Non-GAAP Monetary Measures” on the finish of this launch for a dialogue of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Web Revenue (Loss), Adjusted Diluted Earnings (Loss) per share, Unlevered and Levered Free Money Stream, Web Working Capital, Web Debt and their reconciliations to essentially the most straight comparable monetary measure calculated and introduced in accordance with U.S. typically accepted accounting ideas (“GAAP”). We’ve not offered reconciliations of our future expectations as to Adjusted EBITDA or Adjusted EBITDA margin as such reconciliations are usually not accessible with out unreasonable efforts.

Chris Baker, KLX President and Chief Govt Officer, acknowledged, “We completed the 12 months sturdy regardless of typical seasonal headwinds. 2024 fourth quarter income was $166 million, the midpoint of our steerage, and Adjusted EBITDA margin got here in above our prior steerage. Our companywide give attention to value controls enabled us to extend our 2024 fourth quarter Adjusted EBITDA margin by 187 foundation factors over final 12 months’s fourth quarter, regardless of income and rig rely being down 15% and 5%, respectively, over the identical interval.

“We’ve seen stable consistency in our market-leading tech providers, leases and coiled tubing companies, which have led to improved and sustainable profitability,” added Baker. “We’re intently monitoring potential alternatives for elevated gas-directed exercise, pushed by LNG export and datacenter/AI demand. US LNG export capability is predicted to roughly double by 2030 and, we consider, this improve will drive incremental pure gas-directed exercise throughout the US onshore market that can in the end assist and carry OFS pricing and utilization throughout all basins.

“Moreover, KLX is extraordinarily happy to have efficiently accomplished our refinancing efforts, which can present elevated monetary flexibility as we transfer ahead. Wanting ahead to full 12 months 2025, we count on annual income to be flat to up barely and anticipate our Adjusted EBITDA margin to vary between 13% to fifteen%. As we navigate the evolving vitality panorama, our strategic positioning, operational excellence, and monetary resilience place us to capitalize on rising alternatives and ship sustainable worth to our shareholders within the years forward,” concluded Baker.

Fourth Quarter 2024 Monetary Outcomes

Income for the fourth quarter of 2024 totaled $165.5 million, a lower of 12.4% in comparison with third quarter income of $188.9 million. The lower in income displays a lower in exercise along with the anticipated seasonal decline within the fourth quarter. On a product line foundation, drilling, completion, manufacturing and intervention providers contributed roughly 22%, 52%, 16% and 10%, respectively, to revenues for the fourth quarter 2024.

Web loss for the fourth quarter of 2024 was $(14.7) million, in comparison with fourth quarter 2023 internet lack of $(9.2) million. Adjusted internet loss for the fourth quarter of 2024 was $(13.1) million, in comparison with fourth quarter 2023 adjusted internet lack of $(8.7) million. Adjusted EBITDA for the fourth quarter of 2024 was $22.7 million, in comparison with fourth quarter 2023 Adjusted EBITDA of $23.0 million. Adjusted EBITDA margin for the fourth quarter of 2024 was 13.7%, in comparison with fourth quarter 2023 Adjusted EBITDA margin of 11.8%.

Fourth Quarter 2024 Phase Outcomes

The Firm studies income, working revenue (loss) and Adjusted EBITDA by way of three geographic enterprise segments: Rocky Mountains, Southwest and Northeast/Mid-Con. The Firm studies working actions not attributable to a person geographic enterprise section by way of the Company and different section. Phase outcomes are reported after inter-segment eliminations.

• Rocky Mountains: Income, working revenue and Adjusted EBITDA for the Rocky Mountains section was $54.0 million, $4.7 million and $11.8 million, respectively, for the fourth quarter of 2024. Fourth quarter income represents a 20.5% lower over the third quarter of 2024 largely as a consequence of winter vacation seasonality and price range exhaustion, which affected all of our regional completion and intervention choices, together with coiled tubing, frac leases and wireline providers. Phase working revenue and Adjusted EBITDA decreased 51.5% and 28.9%, respectively, as a perform of the seasonal lower in exercise, which is predicted to appropriate as we exit the primary quarter of 2025.
  
  
• Southwest: Income, working revenue and Adjusted EBITDA for the Southwest section, which incorporates the Permian and South Texas, was $61.4 million, $1.1 million and $9.6 million, respectively, for the fourth quarter of 2024. Fourth quarter income represents a ten.5% lower over the third quarter of 2024 largely as a consequence of annual seasonality as a consequence of price range exhaustion and winter vacation breaks, which affected all product service traces within the area, together with our directional drilling and flowback providers. Phase working revenue and Adjusted EBITDA elevated 57.1% and 10.3%, respectively, due largely to a shift in income combine and diminished overhead, together with headcount and automobile fleet.
  
  
• Northeast/Mid-Con: Income, working revenue and Adjusted EBITDA for the Northeast/Mid-Con section was $50.1 million, $0.3 million and $9.8 million, respectively, for the fourth quarter of 2024. Fourth quarter income represents a 4.4% lower over the third quarter of 2024 pushed largely by decreased completion exercise as a consequence of price range exhaustion and winter vacation breaks. Phase working revenue and Adjusted EBITDA decreased 85.0% and 10.1%, respectively, as a perform of the lower in exercise.
  
  
• Company and different: Working loss and Adjusted EBITDA loss for the Company and different section had been $11.1 million and $8.5 million, respectively, for the fourth quarter of 2024. Phase working loss and Adjusted EBITDA loss remained largely consistent with prior quarter.

The next is a tabular abstract of income, working revenue (loss) and Adjusted EBITDA (loss) for the fourth quarter ended December 31, 2024, the third quarter ended September 30, 2024 and the fourth quarter ended December 31, 2023 ($ in tens of millions).

Stability Sheet and Liquidity

Complete debt excellent as of December 31, 2024 was $285.1 million. As of December 31, 2024, money and money equivalents totaled $91.6 million. Obtainable liquidity as of December 31, 2024 was $112.0 million, together with availability of $20.4 million on the December 2024 asset-based revolving credit score facility (the “Prior ABL Facility”) borrowing base certificates. The senior secured notes bear curiosity at an annual fee of 11.5% (the “2025 Senior Notes”), payable semi-annually in arrears on Could 1^st and November 1^st. Accrued curiosity as of December 31, 2024 was $4.5 million for the 2025 Senior Notes and $0.0 million associated to the ABL Facility.

On March 7, 2025, the Firm and sure of its subsidiaries entered right into a Securities Buy Settlement with sure holders (the “Buyers”) of its 2025 Senior Notes, pursuant to which the Firm agreed to situation and promote to the Buyers (a) roughly $232.2 million in combination principal quantity of 2030 Senior Notes and (b) warrants to buy, within the combination, as much as 2,373,187 shares of the Firm’s frequent inventory, at an train value of $0.01 per share, topic to adjustment (the “Warrants”) in alternate for (i) roughly $78.4 million in combination money consideration and (ii) roughly $143.6 million combination principal quantity of the 2025 Senior Notes, which might be cancelled by the Firm upon receipt (collectively, the “Refinancing”). The Firm accomplished the Refinancing on March 12, 2025, and deposited with the trustee beneath the 2025 Senior Notes indenture $97.1 million in belief and instructed the trustee to use such funds to redeem the remaining 2025 Senior Notes plus accrued curiosity. Upon deposit of the redemption quantity, the 2025 Senior Notes indenture was happy and discharged in accordance with its phrases and the Firm has been launched from its obligations beneath the 2025 Senior Notes indenture besides with respect to these provisions of such indenture that, by their phrases, survive the satisfaction and discharge.

In reference to the Refinancing, the Firm additionally entered right into a Credit score Settlement, dated as of March 7, 2025 (the “New ABL Facility”), with the Firm, as borrower, Eclipse Enterprise Capital LLC, as administrative agent, as collateral agent and as FILO administrative agent and the lenders social gathering thereto. The preliminary funding beneath the New ABL Facility occurred on March 12, 2025, and the proceeds had been used to repay the Firm’s Prior ABL Facility in full. 

Web working capital as of December 31, 2024 was $25.7 million, a 46% lower from December 31, 2023 pushed by diminished exercise and income and a discount in days gross sales excellent as a consequence of improved collections.

Different Monetary Info

Capital expenditures had been $15.3 million throughout the fourth quarter of 2024, out of which $3.3 million was opportunistic and $12.0 million was recurring spend. Fourth quarter capital expenditures decreased by $5.7 million or 27.1% in comparison with capital expenditures of $21.0 million within the third quarter of 2024. Capital spending throughout the fourth quarter was pushed primarily by upkeep capital expenditures throughout our segments.

As of December 31, 2024, we had $2.3 million of belongings held on the market associated to 1 facility and choose gear within the Rocky Mountains and Southwest segments.

Convention Name Info

KLX will conduct its fourth quarter 2024 convention name, which will be accessed through dial-in or webcast, on Thursday, March 13, 2025 at 10:00 a.m. Japanese Time (9:00 a.m. Central Time) by dialing 1-201-389-0867 and asking for the KLX convention name no less than 10 minutes previous to the beginning time, or by logging onto the webcast at https://investor.klx.com/events-and-presentations/occasions. For many who can not take heed to the stay name, a replay might be accessible by way of March 27, 2025, and could also be accessed by dialing 1-201-612-7415 and utilizing passcode 13751933#. Additionally, an archive of the webcast might be accessible shortly after the decision at https://investor.klx.com/events-and-presentations/occasions for 90 days. Please submit any questions for administration previous to the decision through electronic mail to KLXE@dennardlascar.com.

About KLX Power Providers Holdings, Inc.

KLX is a growth-oriented supplier of diversified oilfield providers to main onshore oil and pure gasoline exploration and manufacturing firms working in each typical and unconventional performs in all the lively main basins all through the USA. The Firm delivers mission important oilfield providers targeted on drilling, completion, manufacturing, and intervention actions for technically demanding wells from over 50 service and assist services situated all through the USA. KLX’s complementary suite of proprietary merchandise and specialised providers is supported by technically expert personnel and a broad portfolio of modern in-house manufacturing, restore and upkeep capabilities. Extra data is offered at www.klx.com.

Ahead-Wanting Statements and Cautionary Statements

The Personal Securities Litigation Reform Act of 1995 supplies a “protected harbor” for forward-looking statements to encourage firms to offer potential data to buyers. This information launch (and any oral statements made concerning the topics of this launch, together with on the convention name introduced herein) contains forward-looking statements that mirror our present expectations and projections about our future outcomes, efficiency and prospects. Ahead-looking statements embrace all statements that aren’t historic in nature and are usually not present details. When used on this information launch (and any oral statements made concerning the topics of this launch, together with on the convention name introduced herein), the phrases “consider,” “count on,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “proceed,” “could,” “would possibly,” “ought to,” “may,” “will” or the adverse of those phrases or related expressions are supposed to establish forward-looking statements, though not all forward-looking statements include such figuring out phrases. These forward-looking statements are based mostly on our present expectations and assumptions about future occasions and are based mostly on presently accessible data as to the end result and timing of future occasions with respect to, amongst different issues: our working money flows; the provision of capital and our liquidity; our future income, revenue and working efficiency; our capability to maintain and enhance our utilization, income and margins; our capability to keep up acceptable pricing for our providers; future capital expenditures; our capability to finance gear, working capital and capital expenditures; our capability to execute our long-term development technique and to combine our acquisitions; our capability to efficiently develop our analysis and know-how capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and particular tasks.

Ahead-looking statements are usually not assurances of future efficiency and precise outcomes may differ materially from our historic expertise and our current expectations or projections. These forward-looking statements are based mostly on administration’s present expectations and beliefs, forecasts for our current operations, expertise, expectations and notion of historic traits, present circumstances, anticipated future developments and their impact on us and different elements believed to be applicable. Though administration believes the expectations and assumptions mirrored in these forward-looking statements are cheap as and when made, no assurance will be provided that these assumptions are correct or that any of those expectations might be achieved (in full or in any respect). Our forward-looking statements contain vital dangers, contingencies and uncertainties, most of that are troublesome to foretell and plenty of of that are past our management. Identified materials elements that would trigger precise outcomes to vary materially from these within the forward-looking statements embrace, however are usually not restricted to, dangers related to the next: a decline in demand for our providers, together with as a consequence of overcapacity and different aggressive elements affecting our trade; the cyclical nature and volatility of the oil and gasoline trade, which impacts the extent of exploration, manufacturing and improvement exercise and spending patterns by oil and pure gasoline exploration and manufacturing firms; a decline in, or substantial volatility of, crude oil and gasoline commodity costs, which typically results in decreased spending by our prospects and negatively impacts drilling, completion and manufacturing exercise; inflation; will increase in rates of interest; the continued conflict in Ukraine and its persevering with results on international commerce; the continued battle within the Center East; provide chain points; and different dangers and uncertainties listed in our filings with the U.S. Securities and Alternate Fee, together with our Present Experiences on Type 8-Ok that we file on occasion, Quarterly Experiences on Type 10-Q and Annual Report on Type 10-Ok. Readers are cautioned to not place undue reliance on forward-looking statements, which communicate solely as of the date hereof. We undertake no obligation to publicly replace or revise any forward-looking statements after the date they’re made, whether or not on account of new data, future occasions or in any other case, besides as required by regulation.

KLX Power Providers Holdings, Inc.
Further Chosen Working Information
(Unaudited)

Non-GAAP Monetary Measures

This launch contains Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Web Revenue (Loss), Adjusted Diluted Earnings (Loss) per share, Unlevered and Levered Free Money Stream, Web Working Capital and Web Debt measures. Every of the metrics are “non-GAAP monetary measures” as outlined in Regulation G of the Securities Alternate Act of 1934.

Adjusted EBITDA is a supplemental non-GAAP monetary measure that’s utilized by administration and exterior customers of our monetary statements, reminiscent of trade analysts, buyers, lenders and score businesses. Adjusted EBITDA shouldn’t be a measure of internet earnings or money flows as decided by GAAP. We outline Adjusted EBITDA as internet earnings (loss) earlier than curiosity, taxes, depreciation and amortization, additional adjusted for (i) goodwill and/or long-lived asset impairment costs, (ii) stock-based compensation expense, (iii) restructuring costs, (iv) transaction and integration prices associated to acquisitions and (v) different bills or costs to exclude sure gadgets that we consider are usually not reflective of the continued efficiency of our enterprise. Adjusted EBITDA is used to calculate the Firm’s leverage ratio, per the phrases of the Firm’s ABL Facility.

We consider Adjusted EBITDA is beneficial as a result of it permits us to complement the GAAP measures with a purpose to extra successfully consider our working efficiency and examine the outcomes of our operations from interval to interval with out regard to our financing strategies or capital construction. We exclude the gadgets listed above in arriving at Adjusted EBITDA as a result of these quantities can fluctuate considerably from firm to firm inside our trade relying upon accounting strategies and e-book values of belongings, capital buildings and the tactic by which the belongings had been acquired. Adjusted EBITDA shouldn’t be thought of as a substitute for, or extra significant than, internet revenue as decided in accordance with GAAP, or as an indicator of our working efficiency or liquidity. Sure gadgets excluded from Adjusted EBITDA are vital elements in understanding and assessing an organization’s monetary efficiency, reminiscent of an organization’s value of capital and tax construction, in addition to the historic prices of depreciable belongings, none of that are elements of Adjusted EBITDA. Our computations of Adjusted EBITDA is probably not similar to different equally titled measures of different firms.

Adjusted EBITDA margin is a supplemental non-GAAP monetary measure that’s utilized by administration and exterior customers of our monetary statements, reminiscent of trade analysts, buyers, lenders and score businesses. Adjusted EBITDA margin shouldn’t be a measure of internet earnings or money flows as decided by GAAP. Adjusted EBITDA margin is outlined because the quotient of Adjusted EBITDA and complete income. We consider Adjusted EBITDA margin is beneficial as a result of it permits us to complement the GAAP measures with a purpose to extra successfully consider our working efficiency and examine the outcomes of our operations from interval to interval with out regard to our financing strategies or capital construction, as a share of revenues.

We outline Adjusted Web Revenue (Loss) as consolidated internet revenue (loss) adjusted for (i) goodwill and/or long-lived asset impairment costs, (ii) restructuring costs, (iii) transaction and integration prices associated to acquisitions and (iv) different bills or costs to exclude sure gadgets that we consider are usually not reflective of the continued efficiency of our enterprise. We consider Adjusted Web Revenue (Loss) is beneficial as a result of it permits us to exclude non-recurring gadgets in evaluating our working efficiency.

We outline Adjusted Diluted Earnings (Loss) per share because the quotient of adjusted internet revenue (loss) and diluted weighted common frequent shares. We consider that Adjusted Diluted Earnings (Loss) per share supplies helpful data to buyers as a result of it permits us to exclude non-recurring gadgets in evaluating our working efficiency on a diluted per share foundation.

We outline Unlevered Free Money Stream as internet money offered by working actions much less capital expenditures and proceeds from sale of property and gear plus curiosity expense. We outline Levered Free Money Stream as internet money offered by working actions much less capital expenditures and proceeds from sale of property and gear. Our administration makes use of Unlevered and Levered Free Money Stream to evaluate the Firm’s liquidity and skill to repay maturing debt, fund operations and make extra investments. We consider that every of Unlevered and Levered Free Money Stream present helpful data to buyers as a result of it is a vital indicator of the Firm’s liquidity, together with our capability to cut back Web Debt and make strategic investments.

Web Working Capital is calculated as present belongings, excluding money, much less present liabilities, excluding accrued curiosity and finance lease obligations. We consider that Web Working Capital supplies helpful data to buyers as a result of it is a vital indicator of the Firm’s liquidity.

We outline Web Debt as complete debt much less money and money equivalents. We consider that Web Debt supplies helpful data to buyers as a result of it is a vital indicator of the Firm’s indebtedness.

The next tables current a reconciliation of non-GAAP monetary measures to essentially the most straight comparable GAAP monetary measures for the durations indicated:

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SOURCE KLX Power Providers Holdings, Inc.