Cactus, Inc. (NYSE: WHD) reported Q1 EPS of $0.19, $0.09 better than the analyst estimate of $0.10. Revenue for the quarter came in at $84.4 million versus the consensus estimate of $80.88 million.

First Quarter Highlights

• Revenue of $84.4 million;
• Income from operations of $11.6 million;
• Net income of $15.1 million(1) and diluted earnings per Class A share of $0.19(1);
• Net income, as adjusted(2) of $8.6 million and diluted earnings per share, as adjusted(2) of $0.11;
• Adjusted EBITDA(3) and related margin(4) of $22.8 million and 27.0%, respectively;
• Cash flow from operations of $15.7 million;
• Cash balance of $292.0 million and no bank debt outstanding as of March 31, 2021; and
• The Board of Directors ("the Board") declared a quarterly cash dividend of $0.09 per share.

Scott Bender, President and CEO of Cactus, commented, “While the storms that impacted the Southern U.S. presented challenges in February, we were pleased to achieve significant growth across all of our revenue categories during the first quarter. Cactus maintained Product market share(1) above 40% during the period, as the number of rigs we followed increased by approximately 27% sequentially. In Rental, we were pleased to see significant revenue gains as customers showed an increased appreciation for reliability and efficiency. Additionally, we delivered free cash flow above our dividend and related distributions despite outflows associated with increased working capital needs.

“Looking to the second quarter, we expect further gains in rigs followed. In addition, we believe the impact from increased customer demand is beginning to benefit our business in metrics above and beyond activity improvements. On the new technology front, we successfully deployed our first electric-powered rental equipment. In total, we expect Company revenue to be up in excess of 20% sequentially for the second quarter, primarily driven by our Product business.”

Mr. Bender concluded, “The U.S. market recovery is now in full swing. Safety, returns and free cash flow will remain our top priorities as we evaluate growth opportunities. As a provider of differentiated products and services, our team is confident that the expected increases in activity levels and benefits of greater operating leverage will enable the business to generate attractive returns.”

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