Cactus Announces Fourth Quarter and Full Year 2020 Results

February 24, 2021 4:45 PM EST

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HOUSTON--(BUSINESS WIRE)-- Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the fourth quarter and full year 2020.

Fourth Quarter 2020 Highlights

  • Revenue of $68.1 million;
  • Income from operations of $8.4 million;
  • Net income of $6.1 million(1) and diluted earnings per Class A share of $0.07(1);
  • Net income, as adjusted(2) of $6.3 million and diluted earnings per share, as adjusted(2) of $0.08;
  • Adjusted EBITDA(3) and related margin(4) of $19.8 million and 29.1%, respectively;
  • Cash flow from operations of $21.9 million;
  • Cash balance of $288.7 million and no bank debt outstanding as of December 31, 2020; and
  • In January 2021, the Board of Directors declared a quarterly cash dividend of $0.09 per share. 

Financial Summary

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

(in thousands)

Revenues

 

$

68,090

 

 

$

59,789

 

 

$

140,238

 

 

$

348,566

 

 

$

628,414

 

Income from operations

 

$

8,423

 

 

$

12,556

 

 

$

36,085

 

 

$

70,039

 

 

$

183,150

 

Operating income margin

 

12.4

%

 

21.0

%

 

25.7

%

 

20.1

%

 

29.1

%

Net income(1)

 

$

6,136

 

 

$

10,886

 

 

$

31,274

 

 

$

59,215

 

 

$

156,303

 

Net income, as adjusted(2)

 

$

6,287

 

 

$

9,517

 

 

$

27,721

 

 

$

55,179

 

 

$

139,862

 

Adjusted EBITDA(3)

 

$

19,844

 

 

$

24,550

 

 

$

48,413

 

 

$

121,022

 

 

$

228,999

 

Adjusted EBITDA margin(4)

 

29.1

%

 

41.1

%

 

34.5

%

 

34.7

%

 

36.4

%

(1)  

Net income during the third quarter of 2020 is inclusive of $1.9 million in expense related to the revaluation of the tax receivable agreement liability. Net income during the fourth quarter of 2019 is inclusive of $4.8 million in additional income related to the revaluation of the tax receivable agreement liability and $2.7 million of net additional tax expenses associated with various non-routine items. Net income for the full year 2020 is inclusive of $1.9 million in non-routine charges related to severance and $0.6 million in expense related to the revaluation of the tax receivable agreement liability. Net income for the full year 2019 is inclusive of $5.3 million in additional income related to the revaluation of the tax receivable agreement liability, $1.0 million in offering related expenses and $2.6 million of net additional tax expenses associated with various non-routine items.

(2)  

Net income, as adjusted and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in Cactus Wellhead, LLC (“Cactus LLC”), its operating subsidiary, at the beginning of the period. Additional information regarding net income, as adjusted and diluted earnings per share, as adjusted and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables.

(3)  

Adjusted EBITDA is a non-GAAP financial measure. See definition of Adjusted EBITDA and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables.

(4)  

The percentage of Adjusted EBITDA to Revenues.

Scott Bender, President and CEO of Cactus, commented, “Our industry-leading technology and continued ability to execute placed Cactus in an excellent position to capitalize on the cyclical market recovery that is now underway. As such, Cactus achieved record Product market share(1) during the fourth quarter, as we supplied wellhead equipment for approximately 43% of the U.S. land rigs in operation. Full year and fourth quarter 2020 results highlighted our ability to generate substantial free cash flow and maintain strong margins even in challenging markets.

“Looking to the first quarter of 2021, we expect further gains in rigs followed will benefit our Product business. Additionally, we have witnessed meaningful sequential growth in Rental activity to start the year as customers return to higher-end suppliers with a focus on safety and technology. We expect double digit revenue growth on a percentage basis across all our business lines sequentially during the first quarter, even when accounting for the impact of the adverse weather witnessed in recent weeks.

“In addition to the increased activity witnessed during the fourth quarter, there are a number of positive developments unfolding for Cactus. The macroeconomic environment and associated demand for our products and services is clearly improving in the U.S., as noted by our early 2021 outlook. On the R&D front, we are currently in the late stages of developing technologies specifically designed to reduce the environmental impact of flow control equipment and assist our customers in realizing their ESG-related goals. Additionally, we made our first shipments of equipment to the Middle East in January 2021, which should provide opportunities for growth in the region this year.”

Mr. Bender concluded, “Our performance and recent developments provide grounds for optimism about the trajectory of the business. As always, we will operate with a focus on margins, returns, and creating value for our shareholders.”

(1)  

Additional information regarding market share and rigs followed is located in the Supplemental Information tables.

Revenue Categories

Product

   

 

 

Three Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

2020

 

2019

 

 

(in thousands)

Product revenue

 

$

43,020

 

 

$

35,857

 

 

$

83,371

 

Gross profit

 

$

13,268

 

 

$

15,978

 

 

$

31,059

 

Gross margin

 

30.8

%

 

44.6

%

 

37.3

%

Fourth quarter 2020 product revenue increased $7.2 million, or 20.0%, sequentially, as sales of wellhead and production related equipment increased primarily due to higher drilling activity and increased market share in the U.S. Gross profit decreased $2.7 million, or 17.0%, sequentially, with margins decreasing 1,380 basis points driven largely by a $5.2 million decrease in credits related to tariff refunds. Absent these credits, gross margins would have increased approximately 100 basis points sequentially.

Rental

 

 

 

Three Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

2020

 

2019

 

 

(in thousands)

Rental revenue

 

$

8,590

 

 

$

9,881

 

 

$

28,215

 

Gross profit (loss)

 

$

(826)

 

 

$

234

 

 

$

12,821

 

Gross margin

 

(9.6)

%

 

2.4

%

 

45.4

%

Fourth quarter 2020 rental revenue decreased $1.3 million, or 13.1%, sequentially, as our customers’ utilization of our rental equipment declined during the quarter. Gross profit decreased $1.1 million sequentially and margins decreased 1,200 basis points due largely to a $0.6 million decrease in credits related to tariff refunds and depreciation expense representing a higher percentage of revenue during the period.

Field Service and Other

   

 

 

Three Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

2020

 

2019

 

 

(in thousands)

Field service and other revenue

 

$

16,480

 

 

$

14,051

 

 

$

28,652

 

Gross profit

 

$

4,957

 

 

$

4,728

 

 

$

4,594

 

Gross margin

 

30.1

%

 

33.6

%

 

16.0

%

Fourth quarter 2020 field service and other revenue increased $2.4 million, or 17.3%, sequentially, as higher customer activity drove an increase in associated billable hours and ancillary services. Gross profit increased $0.2 million, or 4.8%, sequentially, with margins decreasing by 350 basis points sequentially due to reduced labor utilization associated with the holidays and a reduction in savings related to the optimization of the Company’s vehicle fleet.

Selling, General and Administrative Expenses (“SG&A”)

SG&A for the fourth quarter of 2020 was $9.0 million (13.2% of revenues), compared to $8.4 million (14.0% of revenues) for the third quarter of 2020 and $12.4 million (8.8% of revenues) for the fourth quarter of 2019. The sequential increase was primarily due to higher payroll and safety and training related expenses due to an increase in headcount.

Liquidity, Capital Expenditures and Other

As of December 31, 2020, the Company had $288.7 million of cash and no bank debt outstanding. Operating cash flow was $21.9 million for the fourth quarter of 2020. During the fourth quarter, the Company made dividend payments and associated distributions of $5.0 million.

Net cash used in investing activities represented $1.7 million during the fourth quarter of 2020. Net capital expenditures for the full year 2020 were $18.1 million. For the full year 2021, the Company expects net capital expenditures to be in the range of $10 to $15 million.

Quarterly Dividend

In January 2021 the Board of Directors (the “Board”) approved and the Company announced the payment of a cash dividend of $0.09 per share of Class A common stock to be paid on March 18, 2021 to holders of record of Class A common stock at the close of business on March 1, 2021. A corresponding distribution of up to $0.09 per CW Unit has also been approved for holders of CW Units of Cactus Wellhead, LLC.

Conference Call Details

The Company will host a conference call to discuss financial and operational results tomorrow, Thursday, February 25, 2020 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus’ website at www.CactusWHD.com. Institutional investors and analysts may participate by dialing (833) 665-0603. International parties may dial (929) 517-0394. The access code is 3572986. Please access the webcast or dial in for the call at least 10 minutes ahead of start time to ensure a proper connection. An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.

About Cactus, Inc.

Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment. Cactus operates service centers in the United States, which are strategically located in the key oil and gas producing regions, including the Permian, Marcellus, Utica, Haynesville, Eagle Ford, Bakken and SCOOP/STACK, among other areas, and in Eastern Australia.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement.

Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited)

   

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands, except per share data)

Revenues

 

 

 

 

 

 

 

 

Product revenue

 

$

43,020

 

 

$

83,371

 

$

206,801

 

 

$

357,087

Rental revenue

 

 

8,590

 

 

 

28,215

 

 

66,169

 

 

 

141,816

Field service and other revenue

 

 

16,480

 

 

 

28,652

 

 

75,596

 

 

 

129,511

Total revenues

 

 

68,090

 

 

 

140,238

 

 

348,566

 

 

 

628,414

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

Cost of product revenue

 

 

29,752

 

 

 

52,312

 

 

131,728

 

 

 

220,615

Cost of rental revenue

 

 

9,416

 

 

 

15,394

 

 

49,077

 

 

 

69,829

Cost of field service and other revenue

 

 

11,523

 

 

 

24,058

 

 

56,143

 

 

 

103,163

Selling, general and administrative expenses

 

 

8,976

 

 

 

12,389

 

 

39,715

 

 

 

51,657

Severance expenses

 

 

 

 

 

 

 

1,864

 

 

 

Total costs and expenses

 

 

59,667

 

 

 

104,153

 

 

278,527

 

 

 

445,264

Income from operations

 

 

8,423

 

 

 

36,085

 

 

70,039

 

 

 

183,150

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

 

(150

)

 

 

390

 

 

701

 

 

 

879

Other income (expense), net

 

 

 

 

 

4,778

 

 

(555

)

 

 

4,294

Income before income taxes

 

 

8,273

 

 

 

41,253

 

 

70,185

 

 

 

188,323

Income tax expense

 

 

2,137

 

 

 

9,979

 

 

10,970

 

 

 

32,020

Net income

 

$

6,136

 

 

$

31,274

 

$

59,215

 

 

$

156,303

Less: net income attributable to non-controlling interest

 

 

2,934

 

 

 

13,216

 

 

24,769

 

 

 

70,691

Net income attributable to Cactus, Inc.

 

$

3,202

 

 

$

18,058

 

$

34,446

 

 

$

85,612

 

 

 

 

 

 

 

 

 

Earnings per Class A share - basic

 

$

0.07

 

 

$

0.38

 

$

0.73

 

 

$

1.90

Earnings per Class A share - diluted (a)

 

$

0.07

 

 

$

0.38

 

$

0.72

 

 

$

1.88

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

47,610

 

 

 

47,128

 

 

47,457

 

 

 

44,983

Weighted average shares outstanding - diluted (a)

 

 

47,985

 

 

 

75,405

 

 

75,495

 

 

 

75,353

(a)   

Dilution for the twelve months ended December 31, 2020 includes $26.2 million of additional pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 24.0%, and 27.9 million weighted average shares of Class B common stock plus the dilutive effect of restricted stock unit awards. Dilution for the three and twelve months ended December 31, 2019 includes an additional $13.6 million and $73.7 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 24.0% and 28.0 million and 30.1 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

   

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

 

(in thousands)

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

288,659

 

$

202,603

Accounts receivable, net

 

 

44,068

 

 

87,865

Inventories

 

 

87,480

 

 

113,371

Prepaid expenses and other current assets

 

 

4,935

 

 

11,044

Total current assets

 

 

425,142

 

 

414,883

 

 

 

 

 

Property and equipment, net

 

 

142,825

 

 

161,748

Operating lease right-of-use assets, net

 

 

21,994

 

 

26,561

Goodwill

 

 

7,824

 

 

7,824

Deferred tax asset, net

 

 

216,603

 

 

222,545

Other noncurrent assets

 

 

1,206

 

 

1,403

Total assets

 

$

815,594

 

$

834,964

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

20,163

 

$

40,957

Accrued expenses and other current liabilities

 

 

11,392

 

 

22,067

Current portion of liability related to tax receivable agreement

 

 

9,290

 

 

14,630

Finance lease obligations, current portion

 

 

3,823

 

 

6,735

Operating lease liabilities, current portion

 

 

4,247

 

 

6,737

Total current liabilities

 

 

48,915

 

 

91,126

 

 

 

 

 

Deferred tax liability, net

 

 

786

 

 

1,348

Liability related to tax receivable agreement, net of current portion

 

 

195,061

 

 

201,902

Finance lease obligations, net of current portion

 

 

2,240

 

 

3,910

Operating lease liabilities, net of current portion

 

 

17,822

 

 

20,283

Total liabilities

 

 

264,824

 

 

318,569

 

 

 

 

 

Equity

 

 

550,770

 

 

516,395

Total liabilities and equity

 

$

815,594

 

$

834,964

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

   

 

 

Twelve Months Ended December 31,

 

 

2020

 

2019

 

 

(in thousands)

Cash flows from operating activities

 

 

 

 

Net income

 

$

59,215

 

 

$

156,303

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

 

Depreciation and amortization

 

 

40,520

 

 

 

38,854

 

Deferred financing cost amortization

 

 

168

 

 

 

168

 

Stock-based compensation

 

 

8,599

 

 

 

6,995

 

Provision for expected credit losses

 

 

342

 

 

 

355

 

Inventory obsolescence

 

 

4,840

 

 

 

2,552

 

(Gain) loss on disposal of assets

 

 

(2,480

)

 

 

236

 

Deferred income taxes

 

 

6,948

 

 

 

25,403

 

(Gain) loss from revaluation of liability related to tax receivable agreement

 

 

555

 

 

 

(5,336

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

44,829

 

 

 

4,204

 

Inventories

 

 

18,201

 

 

 

(17,592

)

Prepaid expenses and other assets

 

 

6,177

 

 

 

438

 

Accounts payable

 

 

(19,434

)

 

 

(607

)

Accrued expenses and other liabilities

 

 

(10,893

)

 

 

6,994

 

Payments pursuant to tax receivable agreement

 

 

(14,207

)

 

 

(9,335

)

Net cash provided by operating activities

 

 

143,380

 

 

 

209,632

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Capital expenditures and other

 

 

(24,493

)

 

 

(59,703

)

Proceeds from sale of assets

 

 

6,346

 

 

 

3,755

 

Net cash used in investing activities

 

 

(18,147

)

 

 

(55,948

)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Payments on finance leases

 

 

(5,317

)

 

 

(7,484

)

Dividends paid to Class A common stock shareholders

 

 

(17,140

)

 

 

(4,244

)

Distributions to members

 

 

(16,304

)

 

 

(8,392

)

Repurchase of shares

 

 

(1,445

)

 

 

(1,549

)

Net cash used in financing activities

 

 

(40,206

)

 

 

(21,669

)

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

1,029

 

 

 

(253

)

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

86,056

 

 

 

131,762

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

Beginning of period

 

 

202,603

 

 

 

70,841

 

End of period

 

$

288,659

 

 

$

202,603

 

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

Net income, as adjusted and diluted earnings per share, as adjusted

(unaudited)

 

Net income, as adjusted and diluted earnings per share, as adjusted are not measures of net income as determined by GAAP. Net income, as adjusted and diluted earnings per share, as adjusted are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines net income, as adjusted as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Net income, as adjusted, also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as net income, as adjusted divided by weighted average shares outstanding, as adjusted. The Company believes this supplemental information is useful for evaluating performance period over period.

   

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands, except per share data)

Net income

 

$

6,136

 

$

10,886

 

 

$

31,274

 

 

$

59,215

 

 

$

156,303

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Severance expenses, pre-tax(1)

 

 

 

 

 

 

 

 

 

 

1,864

 

 

 

 

Other non-operating (income) expense, pre-tax(2)

 

 

 

 

1,865

 

 

 

(4,778

)

 

 

555

 

 

 

(5,336

)

Secondary offering related expenses, pre-tax(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,042

 

Income tax expense differential(4)

 

 

151

 

 

(3,234

)

 

 

1,225

 

 

 

(6,455

)

 

 

(12,147

)

Net income, as adjusted

 

$

6,287

 

$

9,517

 

 

$

27,721

 

 

$

55,179

 

 

$

139,862

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share, as adjusted

 

$

0.08

 

$

0.13

 

 

$

0.37

 

 

$

0.73

 

 

$

1.86

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, as adjusted(5)

 

 

75,740

 

 

75,622

 

 

 

75,405

 

 

 

75,495

 

 

 

75,353

 

(1)  

Represents non-routine charges related to severance benefits.

(2)  

Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement.

(3)   

Reflects fees and expenses recorded in the first quarter of 2019 in connection with the offering of Class A common stock by certain selling stockholders, excluding underwriting discounts and selling commissions incurred by the selling stockholders.

(4)   

Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of Cactus LLC at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 24.0% on income before income taxes for the three and twelve months ended December 31, 2020 and December 31, 2019 and 25.5% for the three months ended September 30, 2020.

(5)   

Reflects 47.6, 47.5, and 47.1 million weighted average shares of basic Class A common stock and 27.8, 27.9 and 28.0 million of additional shares for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, and 47.5 and 45.0 million weighted average shares of basic Class A common stock and 27.9 and 30.1 million of additional shares for the twelve months ended December 31, 2020 and December 31, 2019, respectively, as if the weighted average shares of Class B common stock were exchanged and canceled for Class A common stock at the beginning of the period, plus the effect of dilutive securities.

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

(unaudited)

 

EBITDA and Adjusted EBITDA are not measures of net income as determined by GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below.

 

Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus presents EBITDA and Adjusted EBITDA because it believes they provide useful information regarding the factors and trends affecting the Company’s business.

   

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

(in thousands)

Net income

 

$

6,136

 

$

10,886

 

 

$

31,274

 

 

$

59,215

 

 

$

156,303

 

Interest (income) expense, net

 

 

150

 

 

(218

)

 

 

(390

)

 

 

(701

)

 

 

(879

)

Income tax expense

 

 

2,137

 

 

23

 

 

 

9,979

 

 

 

10,970

 

 

 

32,020

 

Depreciation and amortization

 

 

9,258

 

 

9,762

 

 

 

10,590

 

 

 

40,520

 

 

 

38,854

 

EBITDA

 

 

17,681

 

 

20,453

 

 

 

51,453

 

 

 

110,004

 

 

 

226,298

 

Severance expenses(1)

 

 

 

 

 

 

 

 

 

 

1,864

 

 

 

 

Other non-operating (income) expense(2)

 

 

 

 

1,865

 

 

 

(4,778

)

 

 

555

 

 

 

(5,336

)

Secondary offering related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

1,042

 

Stock-based compensation

 

 

2,163

 

 

2,232

 

 

 

1,738

 

 

 

8,599

 

 

 

6,995

 

Adjusted EBITDA

 

$

19,844

 

$

24,550

 

 

$

48,413

 

 

$

121,022

 

 

$

228,999

 

(1)

 

Represents non-routine charges related to severance benefits.

(2)

 

Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement.

Cactus, Inc. – Supplemental Information

Depreciation and Amortization by Category

(unaudited)

   

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

(in thousands)

Cost of product revenue

 

$

813

 

$

802

 

$

893

 

$

3,506

 

$

3,304

Cost of rental revenue

 

 

6,664

 

 

6,936

 

 

7,014

 

 

28,063

 

 

24,881

Cost of field service and other revenue

 

 

1,601

 

 

1,803

 

 

2,500

 

 

8,075

 

 

9,986

Selling, general and administrative expenses

 

 

180

 

 

221

 

 

183

 

 

876

 

 

683

Total depreciation and amortization

 

$

9,258

 

$

9,762

 

$

10,590

 

$

40,520

 

$

38,854

Cactus, Inc. – Supplemental Information

Estimated Market Share

(unaudited)

 

Market share represents the average number of active U.S. onshore rigs Cactus followed (which Cactus defines as the number of active U.S. onshore drilling rigs to which it was the primary provider of wellhead products and corresponding services during drilling) as of mid-month for each of the three months in the applicable quarter divided by the Baker Hughes U.S. onshore rig count quarterly average. Cactus believes that comparing the total number of active U.S. onshore rigs to which it was providing its products and services at a given time to the number of active U.S. onshore rigs during the same period provides Cactus with a reasonable approximation of its market share with respect to wellhead products sold and the corresponding services it provides.

   

 

 

Three Months Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

2020

 

2019

Cactus U.S. onshore rigs followed

 

127

 

 

91

 

 

246

 

Baker Hughes U.S. onshore rig count quarterly average

 

295

 

 

240

 

 

796

 

Market share

 

43.1

%

 

37.9

%

 

30.9

%

 

Cactus, Inc.
John Fitzgerald, 713-904-4655
Director of Corporate Development and Investor Relations
IR@CactusWHD.com

Source: Cactus, Inc.



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