Q2 2024 Secure Energy Services Inc Earnings Call Transcript
Key Points
- Secure Energy Services Inc (SECYF) reported a strong quarter with adjusted EBITDA of $114 million, surpassing expectations.
- The company successfully executed a share buyback plan, repurchasing nearly 14% of outstanding shares, which improved financial metrics on a per-share basis.
- A strategic tuck-in acquisition of metal recycling yards in Saskatchewan was completed, expanding the company's network and diversifying its supply base.
- The Clearwater heavy oil terminal's Phase 2 expansion doubled its crude oil handling capacity, contributing to higher volumes and recurring cash flows.
- The company maintained a strong balance sheet with significant capacity on its credit facility, supporting strategic priorities and maintaining low leverage.
- Revenue for the quarter was $337 million, representing a 5% decline compared to the same period in 2023, primarily due to divestitures and the sale of a non-core business unit.
- Net income decreased by $2 million compared to the second quarter of 2023, despite an increase in net income per share.
- Transportation costs were higher this quarter, which may impact margins if not normalized in future periods.
- The divestiture of 29 facilities in February impacted overall activity levels and volumes, contributing to the revenue decline.
- Segment profit margins in waste management were down 4% to 5% year-over-year, despite a 15% increase in revenues, indicating potential cost pressures or inefficiencies.
Good morning, ladies and gentlemen, and welcome to the Secure Energy Q2 2024 Results Conference call. (Operator Instructions) This call is being recorded on Tuesday, July 30, 2024.
I would now like to turn the conference over to Chad. Please go ahead.
Thank you, and good morning to everyone who is listening to the call. Welcome to Secure's conference call for the second quarter of 2024. Joining me on the call today is Allen Gransch, our President and Chief Executive Officer; and Corey Higham, our Chief Operating Officer.
During the call, we will make forward-looking statements related to future performance and we will refer to certain financial measures and ratios that do not have any standardized meaning prescribed by GAAP and may not be comparable to similar financial measures or ratios disclosed by other companies. The forward-looking statements reflect the current views of Secure with respect to future events and are based on certain key expectations and assumptions
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