Ranger Industries, Inc. (NYSE: RNGR) reported Q1 EPS of $0.21, $0.10 better than the analyst estimate of $0.11. Revenue for the quarter came in at $88.3 million versus the consensus estimate of $86.63 million.

CEO Comments

“Ranger posted another quarter of improving performance in the face of both ongoing seasonal headwinds and a challenging commodity tape. We are proud of the fact that we have grown both revenue and Adjusted EBITDA every quarter since our Q3 2017 IPO. Financial performance again reached a high water mark in Q1 with a 4% sequential increase in both revenue and Adjusted EBITDA. While we did see the 4th quarter crude price downturn and inclement northern weather impact the start of 2019, these declines were more than offset by our Permian wireline business which saw its first full quarter of operations with the entire complement of assets from our 2018 growth capital program.

Our High Specification Rigs business experienced a modest decrease in pricing and a drop in utilization primarily driven by the impact of lower oil prices and severe weather on our Permian and Bakken 24-hour completion rig activity. Our Permian wireline completions business continued operations on a 100% dedicated basis with an average unit count of 13 during the quarter, up from 11 in Q4. Market share gains and solid pricing also contributed to the success of this business. Our Processing Solutions business results saw a pull-back vs Q4 on the expected return of installation revenue back down to historic run rates.

As we move beyond the first quarter of 2019, we continue to sharpen our focus on near-term cash flow generation and driving efficiencies across our operations while increasing our exposure to existing and new top-tier customers.

On the new customer front, we are pleased to announce a new, multi-year Permian Basin contract with a global, integrated customer. Moving forward, we expect to ramp our High Specification rigs\' activity along with select Completion and Other Services offerings as we mobilize assets to service this contract. This relationship marks a milestone for Ranger as we reap the benefits of our significant work in putting systems and processes in place that allow us to service an increasingly high-graded customer base.

On the cash-flow front, Q1 saw us take delivery of the majority of our expected 2019 growth capital items. For the balance of the year, we continue to plan for minimal capital spend, significant cash flow generation and targeted debt reductions.”

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