FTS International (FTSI) 10-Q 6 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	001-38382
Entity Registrant Name	FTS INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	30-0780081
Entity Address, Address Line One	777 Main Street, Suite 2900
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	817
Local Phone Number	862-2000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FTSI
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001529463
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,749,337
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		312,306

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Predecessor	Successor	Predecessor
Revenue
Revenue	$ 99.8	$ 29.5	$ 195.7	$ 180.3
Revenue from related parties				0.7
Total revenue	99.8	29.5	195.7	181
Operating expenses
Costs of revenue (excluding depreciation of $13.8, 19.2, 27.2 and $39.7 respectively, included in depreciation and amortization below)	75.2	28.9	153.7	143.5
Selling, general and administrative	12.5	13.2	23	30.9
Depreciation and amortization	14.3	20.2	28.2	41.6
Impairments and other charges	0.2	10.3	0.5	14.6
Loss on disposal of assets, net		0.2		0.1
Total operating expenses	102.2	72.8	205.4	230.7
Operating loss	(2.4)	(43.3)	(9.7)	(49.7)
Interest expense, net	(0.1)	(7.4)	(0.2)	(14.7)
Gain on extinguishment of debt, net				2
Reorganization items			(0.5)
Loss before income taxes	(2.5)	(50.7)	(10.4)	(62.4)
Income tax expense	0.1		0.1
Net loss	$ (2.6)	$ (50.7)	$ (10.5)	$ (62.4)
Basic and diluted loss per share	$ (0.19)	$ (9.43)	$ (0.75)	$ (11.61)
Shares used in computing basic and diluted earnings per share (in thousands)	13,995	5,379	13,992	5,373

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Depreciation
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Predecessor	Successor	Predecessor
Depreciation	$ 13.8	$ 19.2	$ 27.2	$ 39.7

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 98.9	$ 94
Accounts receivable, net	46.8	26.9
Inventories	34.5	29
Prepaid expenses and other current assets	4.7	19.5
Total current assets	184.9	169.4
Property, plant, and equipment, net	117.9	132.3
Operating lease right-of-use assets	3.2	4.5
Intangible assets, net	7.1	7.4
Other assets	1.4	1.4
Total assets	314.5	315
Current liabilities
Accounts payable	35.3	26.9
Accrued expenses	15.2	12.5
Current portion of operating lease liabilities	2.1	3
Other current liabilities	0.3	0.3
Total current liabilities	52.9	42.7
Operating lease liabilities	2.1	3.3
Other liabilities	2.1	2.4
Total liabilities	57.1	48.4
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized
Successor Common stock Class A, $0.01 par value, 49,000,000, authorized	0.1	0.1
Additional paid-in capital	281.2	279.9
Accumulated deficit	(23.9)	(13.4)
Total stockholders' equity	257.4	266.6
Total liabilities and stockholders' equity	$ 314.5	$ 315

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock.
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred stock, outstanding (in shares)	0	0
Class A common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	49,000,000	49,000,000
Common stock, issued (in shares)	13,749,337	13,677,664
Common stock, outstanding (in shares)	13,749,337	13,677,664
Class B common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	1,000,000	1,000,000
Common stock, issued (in shares)	312,306	312,306
Common stock, outstanding (in shares)	312,306	312,306

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Predecessor
Cash flows from operating activities
Net loss	$ (10.5)	$ (62.4)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	28.2	41.6
Stock-based compensation	2.6	6.6
Amortization of debt discounts and issuance costs		0.9
Loss on disposal of assets, net		0.1
Gain on extinguishment of debt, net		(2)
Non-cash provision for supply commitment charges		9.1
Cash paid to settle supply commitment charges		(18.8)
Inventory write-down		4.5
Other non-cash items		0.8
Changes in operating assets and liabilities:
Accounts receivable	(19.9)	55.4
Inventories	(5.5)	1
Prepaid expenses and other assets	1.2	0.9
Accounts payable	7.8	(21.3)
Accrued expenses and other liabilities	1.1	(9.5)
Net cash provided by operating activities	5	6.9
Cash flows from investing activities
Capital expenditures	(12.8)	(16.8)
Proceeds from disposal of assets		0.1
Net cash used in investing activities	(12.8)	(16.7)
Cash flows from financing activities
Repayments of long-term debt		(20.6)
Taxes paid related to net share settlement of equity awards		(0.1)
Net cash used in financing activities		(20.7)
Net decrease in cash, cash equivalents, and restricted cash	(7.8)	(30.5)
Cash, cash equivalents, and restricted cash at beginning of period	106.7	223
Cash and cash equivalents at end of period	98.9	192.5
Supplemental cash flow information:
Interest paid		13.9
Income tax payments	0.2
Noncash investing and financing activities:
Capital expenditures included in accounts payable	1.2	2.6
Operating lease liabilities incurred from obtaining right-of-use assets	1	0.5
Derecognition of lease liabilities and right-of-use assets due to lease termination	$ 1.1	$ 0.3

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Millions	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at beginning of period at Dec. 31, 2019	$ 36.4	$ 4,382	$ (4,380.7)	$ 37.7
Balance at beginning of period (in shares) at Dec. 31, 2019	5,355
Net (loss) income			(11.7)	(11.7)
Activity related to stock plan		3		3
Activity related to stock plan (in shares)	20
Balance at end of period at Mar. 31, 2020	$ 36.4	4,385	(4,392.4)	$ 29
Balance at end of period (in shares) at Mar. 31, 2020	5,375
Financial Designation, Predecessor and Successor [Fixed List]				Predecessor
Balance at beginning of period at Dec. 31, 2019	$ 36.4	4,382	(4,380.7)	$ 37.7
Balance at beginning of period (in shares) at Dec. 31, 2019	5,355
Net (loss) income				(62.4)
Balance at end of period at Jun. 30, 2020	$ 36.4	4,388.6	(4,443.1)	$ (18.1)
Balance at end of period (in shares) at Jun. 30, 2020	5,381
Financial Designation, Predecessor and Successor [Fixed List]				Predecessor
Balance at beginning of period at Mar. 31, 2020	$ 36.4	4,385	(4,392.4)	$ 29
Balance at beginning of period (in shares) at Mar. 31, 2020	5,375
Net (loss) income			(50.7)	(50.7)
Activity related to stock plan		3.6		3.6
Activity related to stock plan (in shares)	6
Balance at end of period at Jun. 30, 2020	$ 36.4	4,388.6	(4,443.1)	(18.1)
Balance at end of period (in shares) at Jun. 30, 2020	5,381
Net (loss) income			(68.7)	(68.7)
Activity related to stock plan		2.8		2.8
Balance at end of period at Sep. 30, 2020	$ 36.4	4,391.4	(4,511.8)	(84)
Balance at end of period (in shares) at Sep. 30, 2020	5,381
Net (loss) income			106.7	106.7
Activity related to stock plan		16.5		16.5
Activity related to stock plan (in shares)	75
Balance at end of period before Cancellation of Predecessor Equity at Nov. 19, 2020	$ 36.4	4,407.9	(4,405.1)	39.2
Balance at end of period before Cancellation of Predecessor Equity(in shares) at Nov. 19, 2020	5,456
Balance at end of period After Cancellation Of Predecessor Equity at Nov. 19, 2020
Balance at end of period at Nov. 19, 2020	$ 0.1	279.5		279.6
Balance at end of period (in shares) at Nov. 19, 2020	13,990
Cancelation of Predecessor Equity	$ (36.4)	(4,407.9)	4,405.1	(39.2)
Cancelation of Predecessor Equity (in shares)	(5,456)
Balance at end of period After Cancellation Of Predecessor Equity (in shares)
Issuance of Successor Common Stock	$ 0.1	279.5		279.6
Issuance of Successor Common Stock (in shares)	13,990
Net (loss) income			(13.4)	(13.4)
Activity related to stock plan		0.4		0.4
Balance at end of period at Dec. 31, 2020	$ 0.1	279.9	(13.4)	266.6
Balance at end of period (in shares) at Dec. 31, 2020	13,990
Net (loss) income			(7.9)	(7.9)
Activity related to stock plan		0.9		0.9
Balance at end of period at Mar. 31, 2021	$ 0.1	280.8	(21.3)	$ 259.6
Balance at end of period (in shares) at Mar. 31, 2021	13,990
Financial Designation, Predecessor and Successor [Fixed List]				Successor
Balance at beginning of period at Dec. 31, 2020	$ 0.1	279.9	(13.4)	$ 266.6
Balance at beginning of period (in shares) at Dec. 31, 2020	13,990
Net (loss) income				(10.5)
Balance at end of period at Jun. 30, 2021	$ 0.1	281.2	(23.9)	$ 257.4
Balance at end of period (in shares) at Jun. 30, 2021	14,062
Financial Designation, Predecessor and Successor [Fixed List]				Successor
Balance at beginning of period at Mar. 31, 2021	$ 0.1	280.8	(21.3)	$ 259.6
Balance at beginning of period (in shares) at Mar. 31, 2021	13,990
Net (loss) income			(2.6)	(2.6)
Activity related to stock plan		0.4		0.4
Activity related to stock plan (in shares)	72
Balance at end of period at Jun. 30, 2021	$ 0.1	$ 281.2	$ (23.9)	$ 257.4
Balance at end of period (in shares) at Jun. 30, 2021	14,062

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2021
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1 — BASIS OF PRESENTATION The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. In our opinion, the consolidated financial statements included herein contain all adjustments of a normal, recurring nature considered necessary for a fair presentation of the interim periods. The results of operations of the interim periods are not necessarily indicative of the results of operations to be expected for the full year. There were no items of other comprehensive income in the periods presented. Emergence From Voluntary Reorganization Under Chapter 11 As described in “Note 1 – Description of Business”, “Note 2 – Restructuring”, and “Note 3 – Fresh Start Accounting” of our Consolidated Financial Statements from our annual report on Form 10-K for the year ended December 31, 2020, we filed voluntary petitions for bankruptcy on September 22, 2020, then emerged from bankruptcy on November 19, 2020, and adopted fresh-start accounting upon emergence. References to “Successor” or “Successor Company” relate to the financial position and results of operations of the reorganized Company subsequent to November 19, 2020. References to “Predecessor” or “Predecessor Company” relate to the financial position and results of operations of the Company prior to, and including, November 19, 2020. Certain prior year financial statements are not comparable to our current year financial statements due to the adoption of fresh start accounting. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor periods. The Company’s financial results for future periods will be different from historical trends and the differences may be material. Intangible Assets The amount of intangible assets recorded in our consolidated balance sheets as of June 30, 2021 (Successor) and December 31, 2020 (Successor) was $7.4 million, of which $6.0 million related to our indefinite-lived tradename and $1.4 million related to our developed technology which is being amortized on a straight-line basis over a period of three years . Accumulated amortization of this intangible as of June 30, 2021 (Successor) and December 31, 2020 (Successor) was $0.3 million and $0.1 million, respectively. Amortization expense in the second quarter and first six months of 2021 (Successor) was $0.1 million and $0.2 million, respectively. In the first half of 2020 (Predecessor), amortization expense was zero. Fair Value of Financial Instruments Money market funds, classified as cash and cash equivalents, are the only financial instruments that are measured and recorded at fair value on the Company’s balance sheets. The following table presents money market funds at their level within the fair value hierarchy. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ Principal Amount ​ Total Fair Value ​ Level 1 ​ Level 2 ​ Level 3 June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 60.0 ​ $ 60.0 ​ $ 60.0 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 59.6 ​ $ 59.6 ​ $ 59.6 ​ $ — ​ $ — ​ New Accounting Standards Update In December 2019, the FASB issued ASU No. 2019-12, Simplification of Accounting for Income Taxes

RESTRICTED CASH

RESTRICTED CASH	6 Months Ended
	Jun. 30, 2021
RESTRICTED CASH.
RESTRICTED CASH	NOTE 2 — RESTRICTED CASH Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated statement of cash flows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (In millions) ​ 2021 ​ 2020 Cash and cash equivalents ​ $ 98.9 ​ $ 94.0 Restricted cash included in prepaid expenses and other current assets ​ ​ — ​ ​ 12.7 Total cash, cash equivalents, and restricted cash shown in the ​ $ 98.9 ​ $ 106.7 ​ As of December 31, 2020 (Successor), restricted cash included unsettled escrow fees related to our bankruptcy emergence and cash used as collateral for other banking products.

CURRENT ECONOMIC ENVIRONMENT

CURRENT ECONOMIC ENVIRONMENT	6 Months Ended
	Jun. 30, 2021
CURRENT ECONOMIC ENVIRONMENT
CURRENT ECONOMIC ENVIRONMENT	NOTE 3 — CURRENT ECONOMIC ENVIRONMENT Our business activities are concentrated in the well completion services segment of the oilfield services industry in the United States. The market for these services is cyclical, and we depend on the willingness of our customers to make expenditures to explore for, develop, and produce oil and natural gas in the United States. The willingness of our customers to undertake these activities depends largely upon prevailing industry conditions and is predominantly influenced by current and expected future prices for oil and natural gas. Our customer base is also concentrated. Our business, financial condition and results of operations can be materially adversely affected if one or more of our significant customers ceases to engage us for our services on favorable terms, or at all, or fails to pay, or delays in paying us significant amounts of our outstanding receivables. The prices that we are able to charge for our services is affected by the supply of hydraulic fracturing equipment that is available in the market to meet customer demand. Since the middle of 2018, the supply of hydraulic fracturing equipment has exceeded the demand for equipment, and as a result, the pricing for our services declined during this period. In 2020, the supply of equipment further exceeded demand as the demand for our services dropped significantly. Prices have rebounded slightly in the first half of 2021, but we remain disciplined with respect to the number of fleets we deploy, and we remain focused on optimizing our utilization and cash flow. We focus on keeping our operational execution at the highest levels, further advancing our technology initiatives, and maintaining our industry leading safety performance. With this strategy, we strive to provide the best service quality for our customers while maintaining a low-cost structure. We believe that these efforts combined with the recent improvements in pricing will generate free cash flow in the future. ​

INDEBTEDNESS AND BORROWING FACI

INDEBTEDNESS AND BORROWING FACILITY	6 Months Ended
	Jun. 30, 2021
INDEBTEDNESS AND BORROWING FACILITY
INDEBTEDNESS AND BORROWING FACILITY	NOTE 4 — INDEBTEDNESS AND BORROWING FACILITY Revolving Credit Facility The maximum availability of credit under the Successor Company’s credit facility is limited at any time to the lesser of $40 million or the borrowing base. The borrowing base is based on percentages of eligible accounts receivable and is subject to certain reserves. In an event of default or if the amount available under the credit facility is less than either 12.5% of our maximum availability or $5.0 million, we will be required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0. If at any time borrowings and letters of credit issued under the credit facility exceed the borrowing base, we will be required to repay an amount equal to such excess. The credit facility contains covenants that could, in certain circumstances, limit our ability to issue additional debt, repurchase or pay dividends on our common stock, sell substantially all of our assets, make certain investments, or enter into certain other transactions. We were in compliance with all of the covenants in the credit facility at June 30, 2021. As of June 30, 2021 (Successor), the borrowing base was $35.7 million and therefore our maximum availability under the credit facility was $35.7 million. There were no borrowings outstanding under the credit facility, and letters of credit totaling $4.0 million were issued, resulting in $31.7 million of availability under the credit facility.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2021
REVENUE
REVENUE	NOTE 5 — REVENUE The Company contracts with its customers to perform hydraulic fracturing services on one or more oil or natural gas wells. Under these arrangements, we satisfy our performance obligations as services are rendered, which is generally upon the completion of a fracturing stage or the passage of time. Pricing for our services is frequently negotiated with our customers and is based on prevailing market rates during each reporting period. The amounts we invoice our customers for services performed during a period are directly related to the value received by the customers for the period. There is no inherent uncertainty to the amount of consideration we will receive for services performed during a period and no judgment is required to allocate a portion of the transaction price to a future period. Accordingly, we are not required to identify any unsatisfied performance obligations nor attribute any revenue to them. We have no material contract assets or liabilities with our customers. We do not present disaggregated revenue because we do not believe this information is necessary to understand the nature, amount, timing and uncertainty of our revenues and cash flows.

IMPAIRMENTS AND OTHER CHARGES

IMPAIRMENTS AND OTHER CHARGES	6 Months Ended
	Jun. 30, 2021
IMPAIRMENTS AND OTHER CHARGES
IMPAIRMENTS AND OTHER CHARGES	NOTE 6 — IMPAIRMENTS AND OTHER CHARGES The following table summarizes our impairments and other charges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Successor ​ ​ Predecessor ​ Successor ​ ​ Predecessor ​ ​ Three Months Ended ​ ​ Three Months Ended ​ Six Months Ended ​ ​ Six Months Ended ​ ​ June 30, ​ ​ June 30, ​ June 30, ​ ​ June 30, (In millions) ​ 2021 ​ ​ 2020 ​ 2021 ​ ​ 2020 Transaction and strategic initiative costs ​ $ 0.2 ​ ​ $ — ​ $ 0.8 ​ ​ $ — Gain on contract termination ​ ​ — ​ ​ ​ — ​ ​ (0.3) ​ ​ ​ — Supply commitment charges ​ ​ — ​ ​ ​ 5.9 ​ ​ — ​ ​ ​ 9.1 Inventory write-down ​ ​ — ​ ​ ​ 3.9 ​ ​ — ​ ​ ​ 4.5 Employee severance costs ​ ​ — ​ ​ ​ 0.5 ​ ​ — ​ ​ ​ 1.0 Total impairments and other charges ​ $ 0.2 ​ ​ $ 10.3 ​ $ 0.5 ​ ​ $ 14.6 ​ Transaction and Strategic Initiative Costs In the second quarter and first six months of 2021 (Successor), we incurred $0.2 million and $0.8 million of costs related to strategic initiatives. Gain on Contract Termination In the first quarter of 2021 (Successor), we terminated a portion of our operating lease for certain buildings. We recorded a net gain of $0.3 million as a result of this contract termination. Supply Commitment Charges The Predecessor Company incurred supply commitment charges when our purchases of sand from certain suppliers were less than the minimum purchase commitments in our supply contracts. In the second quarter and first six months of 2020 (Predecessor), we recorded aggregate charges under these supply contracts of $5.9 million and $9.1 million, respectively. The purchase shortfalls were largely due to our customers choosing to procure their own sand, often from sand mines closer to their operating areas. The Company terminated all sand supply contracts upon emergence from bankruptcy. Any amounts due as outlined in the Plan were paid upon emergence and the Company does not expect any future commitment related to these Predecessor contracts. Inventory Write-down In the second quarter and first six months of 2020 (Predecessor), we recorded $3.9 million and $4.5 million, respectively, of inventory write-downs to reduce excess, obsolete and slow-moving inventory to its estimated net realizable value. Employee Severance Costs In the second quarter and first six months of 2020 (Predecessor), we incurred employee severance costs of $0.5 million and $1.0 million, respectively, in connection with our cost reduction measures to mitigate losses from the decline in customer activity levels due to the low commodity price environment.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2021
INCOME TAXES
INCOME TAXES	NOTE 7 — INCOME TAXES We provide a valuation allowance against all deferred tax assets in excess of our deferred tax liabilities. As a result, income tax expense was only recorded for states that limit the deduction of net operating loss carryforwards and for foreign income taxes. Upon our emergence from bankruptcy on November 19, 2020, an ownership change under Internal Revenue Code Section 382 occurred. This change substantially reduced our pre-Chapter 11 net operating loss carryforwards and certain other tax deductions. At each reporting date, we consider all available positive and negative evidence to evaluate whether our deferred tax assets are more likely than not to be realized. A significant piece of negative evidence that we consider is whether we have incurred cumulative losses (generally defined as losses before income taxes) in recent years. Such negative evidence weighs heavily against other more subjective positive evidence such as our projections for future taxable income. Due to the significant fluctuations of our business in recent years, the three year cumulative loss through June 30, 2021, our losses before income taxes for the most recent periods, we concluded that a full valuation allowance was still required at June 30, 2021. ​

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2021
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 8 — EARNINGS PER SHARE The numerators and denominators of the basic and diluted earnings per share (“EPS”) computations for our common stock are calculated as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Successor ​ ​ Predecessor ​ Successor ​ ​ Predecessor ​ ​ Three Months Ended ​ ​ Three Months Ended ​ Six Months Ended ​ ​ Six Months Ended ​ ​ June 30, ​ ​ June 30, ​ June 30, ​ ​ June 30, (Dollars in millions, except per share amounts) ​ 2021 ​ ​ 2020 ​ 2021 ​ ​ 2020 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss used for basic and diluted EPS computations ​ $ (2.6) ​ ​ $ (50.7) ​ $ (10.5) ​ ​ $ (62.4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares used for ​ ​ 13,995 ​ ​ ​ 5,379 ​ ​ 13,992 ​ ​ ​ 5,373 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive potential of equity awards ​ ​ — ​ ​ ​ — ​ ​ — ​ ​ ​ — Number of shares used for ​ ​ 13,995 ​ ​ ​ 5,379 ​ ​ 13,992 ​ ​ ​ 5,373 Basic and diluted EPS ​ $ (0.19) ​ ​ $ (9.43) ​ $ (0.75) ​ ​ $ (11.61) ​ We had 361,000 and 141,000 restricted stock units outstanding as of June 30, 2021 (Successor) and June 30, 2020 (Predecessor), respectively, that were not included in the calculation of diluted EPS for the periods presented because the effect would be antidilutive. These securities would be included in the calculation of diluted EPS in future periods if the Company generates positive net income for purposes of the calculation. The Company also has performance based restricted stock units, stock options, and warrants outstanding that could become potentially dilutive in future periods depending on the company’s market capitalization.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 9 — COMMITMENTS AND CONTINGENCIES Legal Contingencies In the ordinary course of business, we are subject to various legal proceedings and claims, some of which may not be covered by insurance. Some of these legal proceedings and claims are in early stages, and many of them seek an indeterminate amount of damages. We estimate and provide for potential losses that may arise out of legal proceedings and claims to the extent that such losses are probable and can be reasonably estimated. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different from these estimates. When preparing our estimates, we consider, among other factors, the progress of each legal proceeding and claim, our experience and the experience of others in similar legal proceedings and claims, and the opinions and views of legal counsel. Legal costs related to litigation contingencies are expensed as incurred. With respect to the litigation matter below, if there is an adverse outcome individually or collectively, there could be a material adverse effect on the Company’s consolidated financial position or results of operations. Litigation matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Therefore, there can be no assurance as to the ultimate outcome of litigation matters. Regardless of the outcome, any such litigation and claims can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. ​ Patterson v. FTS International Manufacturing, LLC and FTS International Services, LLC We believe that costs associated with other legal matters will not have a material adverse effect on our consolidated financial statements or financial condition.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2021
BASIS OF PRESENTATION
Intangible Assets	Intangible Assets The amount of intangible assets recorded in our consolidated balance sheets as of June 30, 2021 (Successor) and December 31, 2020 (Successor) was $7.4 million, of which $6.0 million related to our indefinite-lived tradename and $1.4 million related to our developed technology which is being amortized on a straight-line basis over a period of three years . Accumulated amortization of this intangible as of June 30, 2021 (Successor) and December 31, 2020 (Successor) was $0.3 million and $0.1 million, respectively. Amortization expense in the second quarter and first six months of 2021 (Successor) was $0.1 million and $0.2 million, respectively. In the first half of 2020 (Predecessor), amortization expense was zero.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Money market funds, classified as cash and cash equivalents, are the only financial instruments that are measured and recorded at fair value on the Company’s balance sheets. The following table presents money market funds at their level within the fair value hierarchy. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ Principal Amount ​ Total Fair Value ​ Level 1 ​ Level 2 ​ Level 3 June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 60.0 ​ $ 60.0 ​ $ 60.0 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 59.6 ​ $ 59.6 ​ $ 59.6 ​ $ — ​ $ —

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2021
BASIS OF PRESENTATION
Schedule of recurring fair value measurements	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ Principal Amount ​ Total Fair Value ​ Level 1 ​ Level 2 ​ Level 3 June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 60.0 ​ $ 60.0 ​ $ 60.0 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 59.6 ​ $ 59.6 ​ $ 59.6 ​ $ — ​ $ —

RESTRICTED CASH (Tables)

RESTRICTED CASH (Tables)	6 Months Ended
	Jun. 30, 2021
RESTRICTED CASH.
Schedule of cash and cash equivalents and restricted cash	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (In millions) ​ 2021 ​ 2020 Cash and cash equivalents ​ $ 98.9 ​ $ 94.0 Restricted cash included in prepaid expenses and other current assets ​ ​ — ​ ​ 12.7 Total cash, cash equivalents, and restricted cash shown in the ​ $ 98.9 ​ $ 106.7

IMPAIRMENTS AND OTHER CHARGES (

IMPAIRMENTS AND OTHER CHARGES (Tables)	6 Months Ended
	Jun. 30, 2021
Table Text Blocks
Schedule of impairments and other charges	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Successor ​ ​ Predecessor ​ Successor ​ ​ Predecessor ​ ​ Three Months Ended ​ ​ Three Months Ended ​ Six Months Ended ​ ​ Six Months Ended ​ ​ June 30, ​ ​ June 30, ​ June 30, ​ ​ June 30, (In millions) ​ 2021 ​ ​ 2020 ​ 2021 ​ ​ 2020 Transaction and strategic initiative costs ​ $ 0.2 ​ ​ $ — ​ $ 0.8 ​ ​ $ — Gain on contract termination ​ ​ — ​ ​ ​ — ​ ​ (0.3) ​ ​ ​ — Supply commitment charges ​ ​ — ​ ​ ​ 5.9 ​ ​ — ​ ​ ​ 9.1 Inventory write-down ​ ​ — ​ ​ ​ 3.9 ​ ​ — ​ ​ ​ 4.5 Employee severance costs ​ ​ — ​ ​ ​ 0.5 ​ ​ — ​ ​ ​ 1.0 Total impairments and other charges ​ $ 0.2 ​ ​ $ 10.3 ​ $ 0.5 ​ ​ $ 14.6

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2021
EARNINGS PER SHARE
Schedule of computations for basic and diluted earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Successor ​ ​ Predecessor ​ Successor ​ ​ Predecessor ​ ​ Three Months Ended ​ ​ Three Months Ended ​ Six Months Ended ​ ​ Six Months Ended ​ ​ June 30, ​ ​ June 30, ​ June 30, ​ ​ June 30, (Dollars in millions, except per share amounts) ​ 2021 ​ ​ 2020 ​ 2021 ​ ​ 2020 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss used for basic and diluted EPS computations ​ $ (2.6) ​ ​ $ (50.7) ​ $ (10.5) ​ ​ $ (62.4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares used for ​ ​ 13,995 ​ ​ ​ 5,379 ​ ​ 13,992 ​ ​ ​ 5,373 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive potential of equity awards ​ ​ — ​ ​ ​ — ​ ​ — ​ ​ ​ — Number of shares used for ​ ​ 13,995 ​ ​ ​ 5,379 ​ ​ 13,992 ​ ​ ​ 5,373 Basic and diluted EPS ​ $ (0.19) ​ ​ $ (9.43) ​ $ (0.75) ​ ​ $ (11.61)

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Other comprehensive income.
Other comprehensive income	$ 0	$ 0

BASIS OF PRESENTATION - Intangi

BASIS OF PRESENTATION - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
BASIS OF PRESENTATION
Intangible assets	$ 7.4	$ 7.4		$ 7.4
Trade name intangible assets	6	6		6
Developed technology intangible assets	1.4	$ 1.4		$ 1.4
Amortization period		3 years		3 years
Accumulated amortization	0.3	$ 0.3		$ 0.1
Amortization expense	$ 0.1	$ 0.2	$ 0

BASIS OF PRESENTATION - Fair Va

BASIS OF PRESENTATION - Fair Value of Financial Instruments (Details) - Recurring - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 60	$ 59.6
Fair value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	60	59.6
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 60	$ 59.6

RESTRICTED CASH (Details)

RESTRICTED CASH (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash, restricted cash and cash equivalents
Cash and cash equivalents	$ 98.9	$ 94
Restricted cash included in prepaid expenses and other current assets		12.7
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$ 98.9	$ 106.7	$ 192.5	$ 223

INDEBTEDNESS AND BORROWING FA_2

INDEBTEDNESS AND BORROWING FACILITY - Revolving Credit Facility (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)
Revolving credit facility
Revolving Credit Facility
Minimum credit facility percentage	12.50%
Minimum maintained credit facility	$ 5
Fixed coverage ratio	1.00%
Borrowing base on line of credit	$ 35.7
Maximum borrowing capacity	35.7
Revolving credit	0
Maximum borrowing credit facility	31.7
Revolving credit facility | Maximum
Revolving Credit Facility
Credit facility sub limit amount	40
Letter of Credit
Revolving Credit Facility
Revolving credit	$ 4

IMPAIRMENTS AND OTHER CHARGES -

IMPAIRMENTS AND OTHER CHARGES - Summary of Impairments and Other Charges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Impairments and other charges
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Predecessor	Successor	Predecessor
Transaction and strategic initiative costs	$ 0.2		$ 0.8
Gain on contract termination			(0.3)
Supply commitment charges		$ 5.9		$ 9.1
Inventory write-down		3.9		4.5
Employee severance costs		0.5		1
Total impairments and other charges	$ 0.2	$ 10.3	$ 0.5	$ 14.6

EARNINGS PER SHARE - (Details)

EARNINGS PER SHARE - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended					6 Months Ended
	Dec. 31, 2020	Nov. 19, 2020	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings per share basic and diluted
Financial Designation, Predecessor and Successor [Fixed List]			Successor			Predecessor		Successor	Predecessor
Numerator:
Net loss used for basic and diluted EPS computations	$ (13.4)	$ 106.7	$ (2.6)	$ (7.9)	$ (68.7)	$ (50.7)	$ (11.7)	$ (10.5)	$ (62.4)
Denominator:
Weighted average shares used for basic EPS computation (in thousands)			13,995			5,379		13,992	5,373
Number of shares used for diluted EPS computation (in thousands)			13,995			5,379		13,992	5,373
Basic and diluted EPS			$ (0.19)			$ (9.43)		$ (0.75)	$ (11.61)
Employee restricted stock units
Denominator:
Dilutive potential of equity awards

EARNINGS PER SHARE - Antidiluti

EARNINGS PER SHARE - Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Predecessor	Successor	Predecessor
Employee restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common stock equivalents that were not included in calculation of diluted net earnings per share			361,000	141,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - Patterson Case - USD ($) $ in Millions	Nov. 12, 2018	Jul. 19, 2018	Jun. 24, 2015
Litigation
Damages sought			$ 1
Damages awarded value	$ 33	$ 100