Q2 2024 Source Energy Services Ltd Earnings Call Transcript
Key Points
- Source Energy Services Ltd (SCEYF) achieved record sand volumes and total revenues for the second consecutive quarter.
- The company successfully reduced its outstanding senior secured notes and ABL balance, lowering net debt to $111.4 million.
- A new partnership with Trican to develop a terminal in Taylor, British Columbia, is expected to support LNG-driven growth without impacting balance sheet goals.
- The last mile logistics group delivered record sand volumes, contributing positively to overall margins.
- Free cash flow for the second quarter increased to $13.5 million, a significant improvement from the previous year.
- The company faces current liabilities due to the maturity of ABL facility and senior secured notes within a year.
- Higher capital expenditures were noted due to lower sales proceeds from excess equipment and terminal expansions.
- Operating general expenses increased by $2.3 million, driven by higher royalty costs and insurance expenses.
- The weaker Canadian dollar increased costs by $1.97 compared to the same period last year.
- There is potential for increased competition in Northeast BC, with other companies rumored to be opening terminals in the area.
Thank you for standing by. This is the conference operator. Welcome to the Source Energy Services second-quarter 2024 results conference call. (Operator Instructions)
I would now like to turn the conference over to Scott Melbourn, CEO. Mr. Melbourn, please proceed.
Good morning, and welcome to Source Energy Services second-quarter 2024 conference call. My name is Scott Melbourn. I'm the CEO of Source. I'm joined today by Derren Newell, our CFO. This morning, we will provide a brief overview of the quarter, which will immediately be followed by a question-and-answer period.
Before I get started, I'd like to refer everyone to the financial statements and the MD&A that were posted to SEDAR and the company's website last night and remind you of the advisory on forward-looking information found in our MD&A and press release. On this call, Source's numbers are in Canadian dollars and metric tonnes and we will refer to adjusted gross margin, adjusted
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
