10-Q: Quarterly report pursuant to Section 13 or 15(d)
Published on May 8, 2019
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.
SELECT ENERGY SERVICES, INC.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
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
· |
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
PART I – FINANCIAL INFORMATION
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
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
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
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
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 |