Ranger Industries, Inc. (NYSE: RNGR) reported Q4 EPS of ($0.01), in-line with the analyst estimate of ($0.01). Revenue for the quarter came in at $80.2 million versus the consensus estimate of $78.62 million.

“As we close out 2019, I would like to reflect on the strategic focus Ranger laid out early last year. Our primary focus entering 2019 was cash flow generation and using that cash to further pay down the modest level of debt carried on our balance sheet. Operationally, we were seeking to drive efficiencies from the wellhead to our back-office systems and process. At the same time, driving to broaden our customer base by increasing our exposure to existing and new top-tier customers. I\'m very proud of our team as they delivered on each of these initiatives throughout the year, which resulted in strong, stable performance in spite of market conditions.

Fourth quarter results continued to reflect 2019’s successes. We saw another quarter of solid cash flow, debt pay down and operational performance.

For the quarter, we produced $16 million of cash flow from operations and reduced net debt by nearly $11 million.

High-grading our High Spec Rig customer base continued. During the quarter, we deployed six additional rigs to satisfy contract wins and other new rig demand opportunities. These rig additions and associated rig hours more than offset the normal seasonal rig hour declines, resulting in our highest quarterly rig hours of the year.

Our Wireline business continues to gain market share. Stage count saw a slight increase against an industry-wide completions activity drop of more than 20%. However, continued pricing pressure more than offset the stage count increase netting to an 8% drop in revenue. The impact to margins was offset, again this quarter, by continued vigilance on labor and input costs and our ongoing highly efficient operations.

Last quarter, our Completion and Other Services segment saw some under-performance in a specific line of business. We noted last call that, during Q3, we completed a full restructuring of this service offering to better align our cost structure with the near-term expected revenue stream. This effort had a positive impact to the segment\'s results.

While our Processing Solutions segment has historically seen limited performance volatility, this quarter was an exception. MRU’s coming off contract during the quarter were not quickly rolled-over or redeployed. For Q4, revenue was down 32% sequentially. While this under-performance is likely to impact Q1 as well, we are expecting this trend to reverse itself and look forward to a return to historic performance levels later in the first half of 2020.

We expect to continue to generate significant cash flow throughout the year, likely necessitating some capital allocation decisions. Given limited growth capex and a modest current debt level, there is likely to be material excess cash to deploy. We’re planning a balanced capital allocation program but have yet to finalize the specifics with our Board.”

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