Nuverra Environmental Solutions (NYSE:NES) (“Nuverra” or “the Company”), a leading provider of full-cycle environmental solutions to the energy and industrial end-markets, today announced financial results for its second quarter and six months ended June 30, 2014.
Summary of Key Second-Quarter Financial Results
Results of operations of Thermo Fluids Inc. (“TFI”) are reflected as discontinued operations due to its pending divestiture.
- Revenue was $126.9 million ($156.6 million including TFI).
- Net loss from continuing operations for the quarter was $(24.7) million (net loss of $(23.3) million including TFI).
- Adjusted EBITDA was $22.9 million ($25.9 million including TFI).
- Net cash capital expenditures were $13.9 million in the second quarter ($15.2 million including TFI).
Mark D. Johnsrud, Chief Executive Officer, commented, “During the second quarter, we sharpened our focus on pricing within the Shale Solutions segment in order to further strengthen our overall platform and reduce low-margin business. We implemented pricing increases in multiple basins during the quarter, which included releasing some business that does not meet our profitability targets. We also identified opportunities to become more efficient and reduce costs. While these activities as a whole resulted in essentially flat sequential revenue for the second quarter, we achieved a 220 bps sequential improvement in adjusted EBITDA margins at our Shale Solutions segment, and a 328 bps sequential improvement in adjusted EBITDA margins from continuing operations.”
The Company also continued to advance its business model and address evolving customer demands, including initiatives for the construction of fixed pipelines and comprehensive solids treatment and reuse solutions. “As shale drilling, completion, and production work expands and matures, the industry is seeing significant increases in well density, which is heightened by the presence of stacked pay zones in certain basins,” Mr. Johnsrud commented. “This is enhancing customer interest in long-term solutions for solids management, as well as fixed pipelines to deal with increasing amounts of water, which is a function of both increased production and more water-intensive hydraulic fracturing methods. As an example, during the second quarter the Company handled an increase of over 20% in liquid disposal volumes quarter over quarter.”