Q2 2024 CES Energy Solutions Corp Earnings Call Transcript
Key Points
- CES Energy Solutions Corp (CESDF) achieved all-time record revenue for Q2 2024 of $553.2 million, a 7% increase from the previous year's Q2 record.
- The company reported its second-highest quarterly EBITDA ever at $95.4 million, marking a 29% increase from Q2 2023.
- CES Energy Solutions Corp (CESDF) maintained a strong EBITDA margin of 17.3%, tying the highest quarterly EBITDA margin achieved in nine years.
- The company generated free cash flow of $54.8 million during the quarter, driven by strong financial metrics.
- Total debt to trailing 12 months EBITDA dropped to a new low of 1.12 times, showcasing effective debt management and financial health.
- The number of rigs drilling in the USA was slightly down quarter-over-quarter by about 3%, indicating a potential slowdown in drilling activity.
- The Permian industry rig count is down 4% from the previous quarter, which could impact future revenue from this key region.
- Despite strong financial performance, CES Energy Solutions Corp (CESDF) faces challenges in maintaining high service intensity levels amid declining rig counts in the US.
- The company has not seen significant action yet from the Champion X deal, which could affect future market share gains.
- International expansion opportunities remain uncertain, with no concrete developments in entering new countries or markets.
Good morning, everyone and welcome to the CES Energy Solutions second quarter 2024 results conference call and webcast. (Operator Instructions) and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.
I would now like to turn the conference over to Tony Aulicino, Chief Financial Officer. Please go ahead.
Thank you, operator. Good morning, everyone and thank you for attending todayâs call. Iâd like to note that in our commentary today, there will be forward-looking financial information and that our actual results may differ materially from the expected results due to various risk factors and assumptions.
These risk factors and assumptions are summarized in our second quarter MD&A and press release dated August 8, 2024, and in our AIF dated February 29, 2024. In addition, certain financial measures that we will refer to today are not recognized under current General Accepted Accounting Policies. And for a description and
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