Nuverra Environmental Solutions (NYSE: NES) (“Nuverra” or the “Company”), today announced financial results for the third quarter ended September 30, 2013. The Company also announced a plan to divest its TFI subsidiary, its intention to effect a 1-for-10 reverse stock split during the fourth quarter, and the appointment of R.D. “Dan” Nelson, who had a 32-year career at ExxonMobil, to its board of directors.
Third Quarter Summary
- Revenue increased 74.8% to $162.6 million, or an increase of $69.6 million over the prior year.
- Continued strong cash flow from operating activities of $39.9 million during the quarter.
- Paid down $15.0 million of the Company’s credit facility.
- Adjusted EBITDA 1, excluding special items, of $25.1 million, an increase of $7.8 million, or 45.4% over the comparable period of the prior year. Margin on an Adjusted EBITDA basis of 15.4%.
- Net cash capital expenditures of $11.7 million during the quarter.
- Reduction in operating working capital 2 by $18.0 million during the quarter, following an improvement of $14.1 million during the second quarter.
- One-time, non-recurring and non-cash charges totaling $233.1 million in the quarter including goodwill and long-lived asset impairment.
Third Quarter Commentary
Mark D. Johnsrud, Chief Executive Officer, commented, “During the third quarter, we did not see the increase in industry activity that many had anticipated. While our Shale Solutions segment revenue was relatively flat, we experienced a sequential decline in segment EBITDA due in part to increased costs in the Bakken that were incurred in preparation for more robust activity in 2014, as well as lingering challenges in the Eagle Ford as we manage competitive pressures and excess capacity in that market.