KLX Energy Services Holdings Inc (NAS:KLXE)
$ 5.99 -0.26 (-4.16%) Market Cap: 100.99 Mil Enterprise Value: 372.58 Mil PE Ratio: 0 PB Ratio: 39.93 GF Score: 48/100

Q3 2024 KLX Energy Services Holdings Inc Earnings Call Transcript

Nov 01, 2024 / 03:00PM GMT
Release Date Price: $4.25 (-3.85%)

Key Points

Positve
  • KLX Energy Services Holdings Inc (KLXE) reported strong Q3 results with $189 million in revenue and $28 million in adjusted EBITDA, achieving a 15% adjusted EBITDA margin.
  • The company outperformed broader market trends despite a decline in average quarterly operated US land rigs and active US frac spreads.
  • KLX Energy Services Holdings Inc (KLXE) demonstrated strong geographic diversification, with significant revenue contributions from the Southwest, Northeast/Mid-Con, and Rockies regions.
  • The company experienced continued positive momentum with its downhole technology offerings and maintained an industry-leading safety record.
  • KLX Energy Services Holdings Inc (KLXE) ended the quarter with a strong cash balance of $83 million and liquidity of $126 million, positioning it well for future opportunities.
Negative
  • KLX Energy Services Holdings Inc (KLXE) anticipates a sequential decline in Q4 revenue of approximately 10% to 14% due to seasonal factors and customer budget exhaustion.
  • The Southwest region experienced a slight 2% sequential decrease in revenue, with significant declines in segment operating income and adjusted EBITDA.
  • The company faced elevated costs related to asset relocation and redeployment in the Rockies, impacting operating income and adjusted EBITDA.
  • KLX Energy Services Holdings Inc (KLXE) reported a corporate operating loss and adjusted EBITDA loss for Q3, with expectations for similar levels going forward.
  • The company is actively considering options to refinance its capital structure, as its ABL and senior secured notes mature in the fall of 2025.
Operator

Greetings, and welcome to the KLX Energy Services 2024 third-quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Dennard, with Investor Relations. Thank you. Mr.

Dennard, you may begin.

Ken Dennard
Dennard Lascar Associates, LLC - Investor Relations

Thank you, operator, and good morning, everyone. We appreciate you joining us for the KLX Energy Services conference call and webcast to review third-quarter 2024 results. With me today are Chris Baker, KLX Energy's President and Chief Executive Officer; and Keefer Lehner, Executive Vice President and Chief Financial Officer.

Following my remarks, management will provide a high-level commentary on the financial details of the third quarter and outlook before opening the call for your questions. There will be a replay of today's call that will be available via webcast on the company's website at klx.com. And there'll also be a telephonic recorded replay available until November 15, 2024. More

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