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Solaris Oilfield Infrastructure Announces Second Quarter 2021 Results

  • Wednesday, July 28, 2021, 3:31 pm
  • ACROFAN=Businesswire
  • webmaster@businesswire.com

Second Quarter 2021 Highlights


  • Net loss of $1.9 million, or $(0.04) per diluted Class A share, for the quarter ended June 30, 2021; Adjusted pro forma net loss of $1.4 million, or $(0.03) per diluted share for the quarter ended June 30, 2021 (see below for a reconciliation of Adjusted pro forma net income to net income attributable to Solaris)
  • Adjusted EBITDA of $6.5 million for the quarter ended June 30, 2021
  • Net cash provided by operating activities of $1.3 million for the quarter ended June 30, 2021
  • Paid a regular quarterly dividend of $0.105 per share on June 25, 2021

HOUSTON--(BUSINESS WIRE)--Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) (“Solaris” or the “Company”), a leading independent provider of supply chain management and logistics solutions designed to drive efficiencies and reduce costs for the oil and natural gas industry, today reported financial results for the second quarter 2021.


Operational Update and Outlook


During the second quarter of 2021, an average of 53 mobile proppant management systems were fully utilized, which was up slightly from average first quarter 2021 levels and up over 25% from average fourth quarter 2020 levels.


“The Solaris team continues to execute well and help our customers drive efficiencies through our core products and services,” Solaris’ Chairman and Chief Executive Officer Bill Zartler commented. “While we continue to prioritize investments in new innovations, including our new integrated electric blender, we remain committed to doing so only when we can deliver compelling shareholder returns. We believe our debt-free balance sheet, strong liquidity and dividend allow us to sustain those commitments, and we look forward to sharing progress on additional opportunities through the remainder of 2021.”


Second Quarter 2021 Financial Review


Solaris reported net loss of $1.9 million, or $(0.04) per diluted Class A share, for second quarter 2021, compared to second quarter 2020 net loss of $9.5 million, or $(0.20) per diluted Class A share. Adjusted pro forma net loss for second quarter 2021 was $1.4 million, or $(0.03) per fully diluted share, compared to second quarter 2020 adjusted pro forma net loss of $7.0 million, or $(0.16) per fully diluted share. A description of adjusted pro forma net income and a reconciliation to net income attributable to Solaris, its most directly comparable generally accepted accounting principles (“GAAP”) measure, and the computation of adjusted pro forma earnings per fully diluted share are provided below.


Revenues were $35.2 million for second quarter 2021, which were up 23% from first quarter 2021.


Adjusted EBITDA for second quarter 2021 was $6.5 million, compared to first quarter 2021 Adjusted EBITDA of $6.1 million. A description of Adjusted EBITDA and a reconciliation to net income, its most directly comparable GAAP measure, is provided below.


Capital Expenditures, Free Cash Flow and Liquidity


Capital expenditures in the second quarter 2021 were $5.1 million compared to capital expenditures of $2.6 million during first quarter 2021. Previous capital expenditure guidance for the full year 2021 of $10.0 to $15.0 million included approximately $5.0 million for investments in new technology, which are now expected to be between $5.0 and $10.0 million. As a result, the Company now expects capital expenditures for the full year 2021 to be between $15.0 and $20.0 million.


Free cash flow (defined as net cash provided by operating activities less investment in property, plant and equipment) during second quarter 2021 was $(3.8) million.


As of June 30, 2021, the Company had approximately $46.3 million of cash on the balance sheet, which reflects about $1.00 per fully diluted share of available cash. The Company’s credit facility remains undrawn, and total liquidity, including availability under the credit facility, was $96.3 million as of the end of the second quarter 2021.


Shareholder Returns


On June 5, 2021, the Company’s Board of Directors declared a cash dividend of $0.105 per share of Class A common stock, which was paid on June 25, 2021 to holders of record as of June 15, 2021. A distribution of $0.105 per unit was also approved for holders of units in Solaris Oilfield Infrastructure, LLC (“Solaris LLC”). Since initiating the dividend in December 2018, the Company has paid 11 consecutive quarterly dividends. Cumulatively, the Company has returned approximately $83 million in cash to shareholders through dividends and share repurchases since December 2018.


Conference Call


The Company will host a conference call to discuss its second quarter 2021 results on Thursday, July 29, 2021 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To join the conference call from within the United States, participants may dial (844) 413-3978. To join the conference call from outside of the United States, participants may dial (412) 317-6594. When instructed, please ask the operator to be joined to the Solaris Oilfield Infrastructure, Inc. call. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investor Relations section of the Company’s website at https://www.solarisoilfield.com.


An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days. It can be accessed by dialing (877) 344-7529 within the United States or (412) 317-0088 outside of the United States. The conference call replay access code is 10157781. The replay will also be available in the Investor Relations section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.


About Solaris Oilfield Infrastructure, Inc.


Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) provides mobile equipment that drives supply chain and execution efficiencies in the completion of oil and natural gas wells. Solaris’ patented mobile proppant and chemical systems are deployed in many of the most active oil and natural gas basins in the United States. Additional information is available on the Solaris website, www.solarisoilfield.com.


Website Disclosure


We use our website (www.solarisoilfield.com) as a routine channel of distribution of company information, including news releases, analyst presentations, and supplemental financial information, as a means of disclosing material non-public information and for complying with our disclosure obligations under the U.S. Securities and Exchange Commission’s (the “SEC”) Regulation FD. Accordingly, investors should monitor our website in addition to following press releases, SEC filings and public conference calls and webcasts. Additionally, we provide notifications of news or announcements on our investor relations website. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts.


None of the information provided on our website, in our press releases, public conference calls and webcasts, or through social media channels is incorporated by reference into, or deemed to be a part of, this Current Report on Form 8-K or will be incorporated by reference into any other report or document we file with the SEC unless we expressly incorporate any such information by reference, and any references to our website are intended to be inactive textual references only.


Forward Looking Statements


This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to, our business strategy, our industry, our future profitability, the various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the volatility in global oil markets and the COVID-19 pandemic, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future long-term contracts and our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to the factors discussed or referenced in our filings made from time to time with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.


SOLARIS OILFIELD INFRASTRUCTURE, INC AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS


(In thousands, except per share data)


(Unaudited)


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Three Months Ended


 


Six Months Ended


 


 


June 30,


 


March 31,


 


June 30,


 


 


2021


 


 


2020


 


 


2021


 


 


2021


 


 


2020


 


Revenue


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


System rental


 


$


14,323


 


 


$


5,463


 


 


$


13,648


 


 


$


27,971


 


 


$


31,522


 


System services


 


 


20,616


 


 


 


3,419


 


 


 


14,710


 


 


 


35,326


 


 


 


24,376


 


Transloading services


 


 


38


 


 


 


264


 


 


 


114


 


 


 


152


 


 


 


729


 


Inventory software services


 


 


202


 


 


 


192


 


 


 


197


 


 


 


399


 


 


 


542


 


Total revenue


 


 


35,179


 


 


 


9,339


 


 


 


28,669


 


 


 


63,848


 


 


 


57,169


 


Operating costs and expenses


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Cost of system rental (excluding depreciation and amortization)


 


 


1,556


 


 


 


823


 


 


 


1,608


 


 


 


3,164


 


 


 


2,836


 


Cost of system services (excluding depreciation and amortization)


 


 


23,282


 


 


 


6,013


 


 


 


17,252


 


 


 


40,534


 


 


 


30,143


 


Cost of transloading services (excluding depreciation and amortization)


197


202


 


244


 


441


540


Cost of inventory software services (excluding depreciation and amortization)


 


 


100


122


102


 


202


267


Depreciation and amortization


 


 


6,752


 


 


 


6,671


 


 


 


6,693


 


 


 


13,445


 


 


 


13,785


 


Selling, general and administrative (excluding depreciation and amortization)


4,964


3,967


4,606


9,570


8,373


Impairment loss


 


 



 


 


 



 


 


 



 


 


 



 


 


 


47,828


 


Other operating expenses (1)


 


 


360


 


 


 


2,274


 


 


 


253


 


 


 


613


 


 


 


3,472


 


Total operating costs and expenses


 


 


37,211


 


 


 


20,072


 


 


 


30,758


 


 


 


67,969


 


 


 


107,244


 


Operating income (loss)


 


 


(2,032


)


 


 


(10,733


)


 


 


(2,089


)


 


 


(4,121


)


 


 


(50,075


)


Interest income (expense), net


 


 


(55


)


 


 


(35


)


 


 


(49


)


 


 


(104


)


 


 


76


 


Total other income (expense)


 


 


(55


)


 


 


(35


)


 


 


(49


)


 


 


(104


)


 


 


76


 


Income (loss) before income tax expense


 


 


(2,087


)


 


 


(10,768


)


 


 


(2,138


)


 


 


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