Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 8, 2019

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10‑Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ________________

Commission File Number 001‑38066

SELECT ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

81‑4561945

(State of incorporation)

(IRS Employer

Identification Number)

 

 

1233 W. Loop South, Suite 1400

Houston, TX

77027

(Address of principal executive offices)

(Zip Code)

 

(713) 235‑9500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

 

 

 

Large accelerated filer ☑

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company ☐

 

 

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company.   Yes  ☐    No  ☑

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A common stock, par value $0.01 per share

WTTR

New York Stock Exchange

 

As of May 6, 2019, the registrant had 79,979,465 shares of Class A common stock and 26,026,843 shares of Class B common stock outstanding.

 

 


 

Table of Contents

SELECT ENERGY SERVICES, INC.

TABLE OF CONTENTS

 

 

 

 

 

Page

PART I—FINANCIAL INFORMATION 

 

 

 

 

Item 1. 

Financial Statements (Unaudited)

5

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

35

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures about Market Risk

48

 

 

 

Item 4. 

Controls and Procedures

49

 

 

PART II—OTHER INFORMATION 

 

 

 

 

Item 1. 

Legal Proceedings

50

 

 

 

Item 1A. 

Risk Factors

50

 

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

50

 

 

 

Item 3. 

Defaults upon Senior Securities

51

 

 

 

Item 4. 

Mine Safety Disclosures

51

 

 

 

Item 5. 

Other Information

51

 

 

 

Item 6. 

Exhibits

51

 

2


 

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10‑Q (the “Quarterly Report”) includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “preliminary,” “forecast,” and similar expressions or variations are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” included in our most recent Annual Report on Form 10-K and under the heading “Part II―Item 1A. Risk Factors” in this Quarterly Report. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:

·

the level of capital spending and access to capital markets by oil and gas companies;

·

trends and volatility in oil and gas prices;

·

demand for our services;

·

capacity constraints on regional oil, natural gas and water gathering, processing and pipeline systems that result in a slowdown or delay in drilling and completion activity, and thus a slowdown or delay in the demand for our services in our core markets;

·

our ability to retain key management and employees;

·

our ability to hire and retain skilled labor;

·

regional impacts to our business, including our key infrastructure assets within the Bakken and northern Delaware formation of the Permian Basin;

·

our level of indebtedness and our ability to comply with covenants contained in our Credit Agreement (as defined herein) or future debt instruments;

·

our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms;

·

our health, safety and environmental performance;

·

the impact of current and future laws, rulings and governmental regulations, including those related to hydraulic fracturing, accessing water, disposing of wastewater, transferring produced water, interstate freshwater transfer, chemicals and various environmental matters;

·

the impact of competition on our operations;

·

the degree to which our exploration and production (“E&P”) customers may elect to bring their water-management services in-house rather than source these services from companies like us;

3


 

Table of Contents

·

delays or restrictions in obtaining permits by us or our customers;

·

constraints in supply or availability of equipment used in our business;

·

the impact of advances or changes in well-completion technologies or practices that result in reduced demand for our services;

·

changes in global political or economic conditions, generally, and in the markets we serve;

·

accidents, weather, seasonality or other events affecting our business; and

·

the other risks identified in our most recent Annual Report on Form 10-K, and under the headings “Part I―Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II―Item 1A. Risk Factors”  in this Quarterly Report.

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. Our future results will depend upon various other risks and uncertainties, including those described under the heading “Part I―Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K and under the heading “Part II―Item 1A. Risk Factors” in this Quarterly Report. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. All forward-looking statements attributable to us are qualified in their entirety by this cautionary note.

4


 

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

SELECT ENERGY SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

March 31, 2019

 

December 31, 2018

 

    

(unaudited)

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,683

 

$

17,237

Accounts receivable trade, net of allowance for doubtful accounts of $5,580 and $5,329, respectively

 

 

347,703

 

 

341,711

Accounts receivable, related parties

 

 

1,634

 

 

1,119

Inventories

 

 

42,520

 

 

44,992

Prepaid expenses and other current assets

 

 

26,365

 

 

27,093

Total current assets

 

 

433,905

 

 

432,152

Property and equipment

 

 

1,071,777

 

 

1,114,378

Accumulated depreciation

 

 

(595,332)

 

 

(611,530)

Property and equipment held-for-sale, net

 

 

13,733

 

 

 —

Total property and equipment, net

 

 

490,178

 

 

502,848

Right-of-use assets

 

 

72,341

 

 

 —

Goodwill

 

 

266,934

 

 

273,801

Other intangible assets, net

 

 

145,408

 

 

148,377

Other assets

 

 

3,186

 

 

3,427

Total assets

 

$

1,411,952

 

$

1,360,605

Liabilities and Equity

 

 

 

 

 

  

Current liabilities

 

 

 

 

 

  

Accounts payable

 

$

64,694

 

$

53,847

Accrued accounts payable

 

 

48,162

 

 

62,536

Accounts payable and accrued expenses, related parties

 

 

7,375

 

 

5,056

Accrued salaries and benefits

 

 

25,666

 

 

22,113

Accrued insurance

 

 

13,359

 

 

14,849

Sales tax payable

 

 

2,530

 

 

5,820

Accrued expenses and other current liabilities

 

 

9,415

 

 

14,560

Current operating lease liabilities

 

 

21,959

 

 

 —

Current portion of finance lease obligations

 

 

743

 

 

938

Total current liabilities

 

 

193,903

 

 

179,719

Long-term operating lease liabilities

 

 

70,641

 

 

16,752

Other long-term liabilities

 

 

7,295

 

 

8,361

Long-term debt

 

 

25,000

 

 

45,000

Total liabilities

 

 

296,839

 

 

249,832

Commitments and contingencies (Note 10)

 

 

 

 

 

  

Class A common stock, $0.01 par value; 350,000,000 shares authorized and 79,998,292 shares issued and outstanding as of March 31, 2019; 350,000,000 shares authorized and 78,956,555 shares issued and outstanding as of December 31, 2018

 

 

800

 

 

790

Class A-2 common stock, $0.01 par value; 40,000,000 shares authorized, no shares issued or outstanding as of March 31, 2019 and December 31, 2018

 

 

 —

 

 

 —

Class B common stock, $0.01 par value; 150,000,000 shares authorized and 26,026,843 shares issued and outstanding as of March 31, 2019; 150,000,000 shares authorized and 26,026,843 shares issued and outstanding as of December 31, 2018

 

 

260

 

 

260

Preferred stock, $0.01 par value; 50,000,000 shares authorized and no shares issued and outstanding as of March 31, 2019 and December 31, 2018

 

 

 —

 

 

 —

Additional paid-in capital

 

 

818,556

 

 

813,599

Retained earnings

 

 

19,788

 

 

18,653

Accumulated other comprehensive deficit

 

 

(314)

 

 

(368)

Total stockholders’ equity

 

 

839,090

 

 

832,934

Noncontrolling interests

 

 

276,023

 

 

277,839

Total equity

 

 

1,115,113

 

 

1,110,773

Total liabilities and equity

 

$

1,411,952

 

$

1,360,605

The accompanying notes to consolidated financial statements are an integral part of these financial statements.

5


 

Table of Contents

SELECT ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

    

2019

    

2018

Revenue

 

 

  

 

 

  

Water services

 

$

220,595

 

$

218,230

Water infrastructure

 

 

53,616

 

 

54,057

Oilfield chemicals

 

 

66,829

 

 

63,630

Other

 

 

21,606

 

 

40,478

Total revenue

 

 

362,646

 

 

376,395

Costs of revenue

 

 

  

 

 

  

Water services

 

 

163,121

 

 

164,630

Water infrastructure

 

 

41,430

 

 

40,096

Oilfield chemicals

 

 

59,527

 

 

57,084

Other

 

 

21,053

 

 

35,754

Depreciation and amortization

 

 

31,518

 

 

30,882

Total costs of revenue

 

 

316,649

 

 

328,446

Gross profit

 

 

45,997

 

 

47,949

Operating expenses

 

 

  

 

 

  

Selling, general and administrative

 

 

32,376

 

 

25,681

Depreciation and amortization

 

 

1,000

 

 

541

Impairment of goodwill

 

 

4,396

 

 

 —

Impairment of property and equipment

 

 

519

 

 

 —

Impairment of cost-method investment

 

 

 —

 

 

2,000

Lease abandonment costs

 

 

1,073

 

 

1,124

Total operating expenses

 

 

39,364

 

 

29,346

Income from operations

 

 

6,633

 

 

18,603

Other income (expense)

 

 

  

 

 

  

Losses on sales of property and equipment, net

 

 

(4,491)

 

 

(554)

Interest expense, net

 

 

(1,093)

 

 

(1,151)

Foreign currency gain (loss), net

 

 

260

 

 

(400)

Other income, net

 

 

269

 

 

96

Income before income tax expense

 

 

1,578

 

 

16,594

Income tax expense

 

 

(178)

 

 

(462)

Net income

 

 

1,400

 

 

16,132

Less: net income attributable to noncontrolling interests

 

 

(265)

 

 

(6,033)

Net income attributable to Select Energy Services, Inc.

 

$

1,135

 

$

10,099

 

 

 

 

 

 

 

Net income per share attributable to common stockholders (Note 16):

 

 

 

 

 

  

Class A—Basic

 

$

0.01

 

$

0.15

Class A-1—Basic

 

$

 —

 

$

 —

Class A-2—Basic

 

$

 —

 

$

0.15

Class B—Basic

 

$

 —

 

$

 —

 

 

 

 

 

 

 

Net income per share attributable to common stockholders (Note 16):

 

 

 

 

 

  

Class A—Diluted

 

$

0.01

 

$

0.15

Class A-1—Diluted

 

$

 —

 

$

 —

Class A-2—Diluted

 

$

 —

 

$

0.15

Class B—Diluted

 

$

 —

 

$

 —

 

The accompanying notes to consolidated financial statements are an integral part of these financial statements.

6


 

Table of Contents

SELECT ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

    

2019

    

2018

Net income

 

$

1,400

 

$

16,132

Other comprehensive income

 

 

  

 

 

  

Foreign currency translation adjustment, net of tax of $0

 

 

54

 

 

(259)

Net change in unrealized gain (loss)

 

 

54

 

 

(259)

Comprehensive income

 

 

1,454

 

 

15,873

Less: comprehensive income attributable to noncontrolling interests

 

 

(275)

 

 

(5,936)

Comprehensive income attributable to Select Energy Services, Inc.

 

$

1,179

 

$

9,937

 

The accompanying notes to consolidated financial statements are an integral part of these financial statements.

 

 

7


 

Table of Contents

SELECT ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the three months ended March  31, 2019 and 2018

(unaudited)

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class A-2

 

Class B

 

Preferred

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Stockholders

 

Stockholders

 

Stockholders

 

Stockholders

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

 

Class A-2

 

 

 

Class B

 

 

 

 

 

 

Additional

 

 

 

 

Comprehensive

 

Total

 

 

 

 

 

 

 

 

 

 

Common

 

 

 

Common

 

 

 

Common

 

 

 

Preferred

 

Paid-In

 

Retained

 

Income

 

Stockholders’

 

Noncontrolling

 

 

 

 

  

Shares

  

Stock

  

Shares

  

Stock

  

Shares

  

Stock

  

Shares

  

Stock

  

Capital

  

Earnings

  

(Loss)

  

Equity

  

Interests

  

Total

Balance as of December 31, 2018

 

78,956,555

 

$

790

 

 —

 

$

 —

 

26,026,843

 

$

260

 

 —

 

$

 —

 

$

813,599

 

$

18,653

 

$

(368)

 

$

832,934

 

$

277,839

 

$

1,110,773

ESPP shares issued

 

2,810

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

29

 

 

 —

 

 

 —

 

 

29

 

 

(2)

 

 

27

Equity-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

3,154

 

 

 —

 

 

 —

 

 

3,154

 

 

1,025

 

 

4,179

Issuance of restricted shares

 

1,169,777

 

 

11

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

3,025

 

 

 —

 

 

 —

 

 

3,036

 

 

(3,036)

 

 

 —

Exercise of restricted stock units

 

625

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 2

 

 

 —

 

 

 —

 

 

 2

 

 

(2)

 

 

 —

Repurchase of common stock

 

(125,786)

 

 

(1)

 

 

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(1,244)

 

 

 —

 

 

 —

 

 

(1,245)

 

 

29

 

 

(1,216)

Restricted shares forfeited

 

(5,689)

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(15)

 

 

 —

 

 

 —

 

 

(15)

 

 

15

 

 

 —

Distributions to noncontrolling interests, net

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(121)

 

 

(121)

NCI income tax adjustment

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 6

 

 

 —

 

 

 —

 

 

 6

 

 

(6)

 

 

 —

Foreign currency translation adjustment

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

54

 

 

54

 

 

17

 

 

71

Net income

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

1,135

 

 

 —

 

 

1,135

 

 

265

 

 

1,400

Balance as of March 31, 2019

 

79,998,292

 

$

800

 

 —

 

$

 —

 

26,026,843

 

$

260

 

 —

 

$

 —

 

$

818,556

 

$

19,788

 

$

(314)

 

$

839,090

 

$

276,023

 

$

1,115,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class A-2

 

Class B

 

Preferred

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Stockholders

 

Stockholders

 

Stockholders

 

Stockholders

 

 

 

 

Retained

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

 

Class A-2

 

 

 

Class B

 

 

 

 

 

 

Additional

 

Earnings

 

Comprehensive

 

Total

 

 

 

 

 

 

 

 

 

 

Common

 

 

 

Common

 

 

 

Common

 

 

 

Preferred

 

Paid-In

 

(Accumulated

 

Income

 

Stockholders’

 

Noncontrolling

 

 

 

 

  

Shares

  

Stock

  

Shares

  

Stock

  

Shares

  

Stock

  

Shares

  

Stock

  

Capital

  

Deficit)

  

(Loss)

  

Equity

  

Interests

  

Total

Balance as of December 31, 2017

 

59,182,176

 

$

592

 

6,731,845

 

$

67

 

40,331,989

 

$

404

 

 —

 

$

 —

 

$

673,141

 

$

(17,859)

 

$

302

 

$

656,647

 

$

406,722

 

$

1,063,369

Conversion of Class A-2 to Class A

 

6,731,839

 

 

67

 

(6,731,839)

 

 

(67)

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Equity-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1,542

 

 

 —

 

 

 —

 

 

1,542

 

 

939

 

 

2,481

Issuance of restricted shares

 

331,389

 

 

 3

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1,421

 

 

 —

 

 

 —

 

 

1,424

 

 

(1,424)

 

 

 —

Exercise of restricted stock units

 

27,235

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 2

 

 

 —

 

 

 —

 

 

 2

 

 

(2)

 

 

 —

Stock options exercised

 

19,398

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

81

 

 

 —

 

 

 —

 

 

81

 

 

49

 

 

130

Repurchase of common stock

 

(15,234)

 

 

 —

 

(6)

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(222)

 

 

 —

 

 

 —

 

 

(222)

 

 

(42)

 

 

(264)

Restricted shares forfeited

 

(18,640)

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(70)

 

 

 —

 

 

 —

 

 

(70)

 

 

70

 

 

 —

Noncontrolling interest in subsidiary

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(161)

 

 

(161)

Foreign currency translation adjustment

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(259)

 

 

(259)

 

 

(158)

 

 

(417)

Net income

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

10,099

 

 

 —

 

 

10,099

 

 

6,033

 

 

16,132

Balance as of March 31, 2018

 

66,258,163

 

$

662

 

 —

 

$

 —

 

40,331,989

 

$

404

 

 —

 

$

 —

 

$

675,895

 

$

(7,760)

 

$

43

 

$

669,244

 

$

412,026

 

$

1,081,270

 

The accompanying notes to consolidated financial statements are an integral part of these financial statements.

 

 

8


 

Table of Contents

SELECT ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

Three months ended March 31, 

 

    

2019

 

2018

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

1,400

 

$

16,132

Adjustments to reconcile net income (loss) to net cash provided by operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

32,518

 

 

31,423

Net (gain) loss on disposal of property and equipment

 

 

(223)

 

 

554

Bad debt expense

 

 

732

 

 

485

Amortization of debt issuance costs

 

 

172

 

 

172

Inventory write-down

 

 

75

 

 

266

Equity-based compensation

 

 

4,179

 

 

2,481

Impairment of goodwill

 

 

4,396

 

 

 —

Impairment of property and equipment

 

 

519

 

 

 —

Impairment of cost-method investment

 

 

 —

 

 

2,000

Loss on divestitures

 

 

4,714

 

 

 —

Other operating items, net

 

 

(270)

 

 

117

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(17,390)

 

 

(33,691)

Prepaid expenses and other assets

 

 

1,706

 

 

(1,283)

Accounts payable and accrued liabilities

 

 

4,059

 

 

16,549

Net cash provided by operating activities

 

 

36,587

 

 

35,205

Cash flows from investing activities