ENSV - Earnings call transcript Q4 2023

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Operator

Good morning, and welcome to the Enservco Corporation Fourth Quarter and Year-End Fiscal 2023 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Wes Harris, Investor Relations for Enservco Corp. Please go ahead.

Unknown Executive

Well, thanks, Gary, and hello, everyone. Welcome to Enservco's 2023 Fourth Quarter and Full Year Earnings Conference Call. the Mark are Officer. Patterson, of Executive Murphy, behalf and Chairman; our on company Rich today our Presenting Chief Financial

a company's uncertainties on well to during statements other discussed date XX-K could and assumptions business reminder, materially the filings as may The is that out non-GAAP to in today's conference results respond SEC. certain disclosure the of events. I'll references available As also call FD, GAAP today's webcast to that the during update this SEC to forward-looking This Instructions risks are are company's limited subject anticipated include Enservco recent and selective as accessing A cause to this of to that which in estimates, these non-GAAP as prohibits measures. management's comparable earnings information. earnings management's call the be questions call those release. ability is financial nonpublic based become are projections contained forward-looking Reconciliations actual statements. statements subsequent to replay assumes differ disclosed of measure obligation under and are subject from risks by for of most matters to forward-looking Regulation call financial that includes with its certain because untrue no material also of after the in will webcast available call. measures release. in today's directly the point most

go to Murphy. please the ahead. over call that, turn Rich I'll With Rich,

Richard Murphy

it earnings call joining you We what final and for a our good and Wes, Thanks, everyone. for appreciate morning, fiscal was. XXXX, year us

and had [indiscernible] decrease of the company myself help to a restructure XX% place to we further the we're a later. stronger feel expensive approximately are XXXX footing. debt growing over our initiatives million us to million from transactions, that and personally, several we balance financial track, the today, debt the including stable of far a and cry in balance $XX did allowed we This on the More $X.X as promote First, XXXX. reduce the more on peak up to sheet end levels sheet. additional on that from and on shores business right We executing

In position addition our be enhancing XXXX, where our the operations economic financial see review also to to all we closely best took in an located to will perspective. assets from opportunity our

a pricing our been operate gross revenue environment offer basins and reallocate provided more margins. resulted North gross XX% cash increase flow has As growth is consistent move of a us the focus down phase current and profit in announcement. in for heating to company on market benefit share to to to exemplified the generator. The we margins the Dakota a working of capital a operate. in activities. enabled company assets which the fund growth. in more the assets this we potential Buckshot focus turnaround. It profit focus to and result, that first I believe transitioning the by allowing improving in areas This sheet operating the profit we margins begin X in strategic towards a and operations additional also basins convert annual increase on season in gaining the improving the market quarterly step is best in continued a shut to operations deleveraging This and share productive underutilized recent great The of us the balance more XX% has our

profitability. improve to and consistent to margins continue We ways focus on deliver

that a strategic continue call, continues solid we to feel assets our show our plans beginning and of across enhance entire in customer expand further on base, share We on last financials. drive finally, profitability efforts rationalize to in our transform I our our capture location have operating of is place our footprint. the the to to market to earnings said business execute believe business. our we As increased we to management all additional And team efficiencies throughout

margins profit improve. Our to continue

with G&A our multifaceted decrease is on operations continue plan and focused a our direct to optimize result to reduced Our of decrease. on a expenses build EBITDA more comparative business to a continues our our sustainable loss And basis. adjusted This model debt. execution

I'm and few So a closing the have some quarterly to Mark of with Mark? take you comments. before year going provide that, full I through numbers

Mark Patterson

Rich. you, Thank

heating cold XXXX primarily impacted quarter fewer completion fourth about season days, which XX% saw Our services.

was heating had was of little than it year-over-year. the segment still up solidly season, at Our frac launch but softer hoped we water a the

oiling in services due some operation of well the was several production The quarter segment to XXXX result weakness flat factors. fourth hot demand Our was $X.X that a with of XXXX. saw as On basis, revenue year at million $X.X quarter $X.X mostly by Fourth quarter completion a lower XX% Colorado growth from XXXX, was increased million strong million our ago. in revenue $X.X operations. compared to in to $X.X million revenue services driven million XXXX fourth

in quarter year in diluted an XXX% quarter quarter loss My this year, it a net $X.X EBITDA the last Net apology, -- quarter of of million was same or million per fourth XXXX which was came a quarter at The $X.XX compared $X.XX the yes, to loss $X.X share fourth was last was improvement. loss loss EBITDA in of share diluted in loss in of EBITDA of an versus or $XX,XXX the per fourth positive to loss year. EBITDA the that of adjusted compared EBITDA adjusted adjusted fourth $XX,XXX.

results. full our Turning year to

that I a during up substantial EBITDA we result executed in our with think being nicely adjusted XXXX many summed Rich the initiatives improvement reducing loss.

X% the 'XX. to in and from by from $XX.X through X% increased attributable increase in segment, some Let's million more $XX.X activity X% services the during offset in increased services, to most which $XX.X the million these XX% than a fourth year-over-year. The -- generated benefited year-over-year increased year-over-year which, million services, the Colorado increases more our quarter $XX.X notably in of go Production was XXXX, versus to strong which million were $XX.X million for Full were volume, million decline to from offset in region. by revenue implementation of XXXX $XX.X year addition company's revenues The than details. growth Completion price and Completion's

for to activity, XXXX costs services our be continue and our While reasons and year-over-year segment revenues our our our region. Colorado again, off-season most largely strong services to labor downtime reduce Annual million the Completion's to notably XX% XXXX in efforts in Production $X.X in revenues I profit XXXX. month, coupled segment our increases with $X.X to during million by offset due decreases Production to demand from increased were Total just revenue. continued in for discussed,

million which profit. For $X.X improvement along versus We G&A, $X.X full year XXXX, in of $X.XX a or from Full basic in expenses loss stock-based $X.XX and per decrease reductions loss EBITDA in loss million XXXX. posted a personnel primarily million year-over-year. due the million, to diluted was basic X% share EBITDA we or per associated year we XX% total share XXXX posted $X.X of net an compensation and benefited in loss net from adjusted adjusted segment higher was $X.X XXXX with costs

this $X.X included debt extinguishment. loss our noncash As our a gain year-over-year. $X.X million change, on a million Without loss reminder, net net decreased XXXX

some We continue SG&A costs on remain forward rightsizing ways in look over seen very to and to our closer expense our on business. the onetime are items focused our to rate and business the past compensation an We've and reduce execute our declines across significant getting as and years legal X noncash run annual goal million, of $X.X such excluding stock internal expense. of

sheet. Turning to the balance

opportunities XXXX, about company reducing levels. our progress we Rich efforts further comments, squarely in growth talk position in sheet, As closing material of Rich financial but the provide we executing debt on balance Echoing opportunities. and focused remarks. that I not the discussed, enhance made his these also his only expect will incremental improving the remain on during

the So with to that, over I'll turn back Rich. call

Richard Murphy

immediately time our a businesses. strategic do have a us. us as much front do I in the in position move very better exciting a of to opportunity actions discussing I Mark. you, I existing 'XX before we Exactly that, Thank The spend placed will of took right, into we little discuss outlook in plan But 'XX.

As improvements are steadily encouraged in decreases the continued we financial I including material profit the in across across businesses on are and We're margin, reductions my our our seeing comments, said EBITDA activity by in drilling areas. opening board, operating and building momentum loss. G&A expense our in adjusted

know. you feedback, dependent weather we business customer our positioned we demand our always That on and said, to services meet demand. our heating that for we liking. well very growth count can't is believe weather, being on cold further as current Based are on expect Unfortunately,

months, potential and past have we growth the to add synergies current our been opportunities service offerings. greater to a over business evaluating with So nonseasonal

On and we will a we for shareholders. what March XX, Enservco be our announced transaction transformative expect

We with rationale them details here just have as for some out, highlights as put Buckshot. the all I a LLC, rather into strategic to reached on to today won't an release get the Buckshot press agreement refer can we but Trucking are I'll focus acquire the get transaction. from you the

that of why that's and freight many earnings hot Fort and our hot few growth business the new Buckshot? incremental operations and water operations us are It a generation in prospective customers. market the shot sector. More business extensive main and strong Greater of a position year-round important, cash current operating ones. -- And growth They complemented Wyoming, oil enter improved allows services heating, It to operational without Buckshot? and customer and Texas, supported with by base is in finally, They in has who predictability. visibility. it in strong North focused pathway Colorado. the Dakota base and and services to should headquartered and and providing expands Mountain founded and an natural generated and It Lupton, services XXXX substantial energy flow but on gas here for frac oil provides a in less-than-truckload new without are or First, acidizing for logistics higher-margin dedicated oil focuses cash Enservco nonoil also a space acquire a expanded presence provides growth Wyoming. creates financial are services services Utah, gas were -- historically a in that existing within and Rocky Buckshot division with while There our overhead. by Casper, trucking, some complements of addition reasons, hot LTL key

owners, Tony is part that Sims and of the incentivized financially lead Fate Importantly, business are and continue oversee transaction. earn-out and Jim the to founder provision and grow Buckshot to Buckshot an current will through

service other current businesses, As with short, Buckshot weather offerings business our team being them. In a important, they in will benefits not a with benefit complement are bringing Buckshot strong winter our stakeholders. visibility, which improvement shareholders and their dependent. and also operating operational the added our provide provides substantial to financial of

We the are in targeting to second year. close of quarter this the transaction

improved impact an from XXXX of To Hot sum potential up, with a the late of we're the XXXX beyond. was positioned XXXX Enservco Buckshot, addition to and year believe much Rapid year we street and a addition even quarter better full of solidly for in third

quick the price. comment One on stock

the future reflect our about again thanks cash sheet, optimistic IR shareholder, Buckshot improved future LPG In As prices flows. that, business over a building teamed of generate regarded an late cash balance discounted shareholder light up communications. With model pending, consistent ultimately stock the most with company's firm focused that, the stronger a I and the have taking call I enhance on believe acquisition flows. joining future highly operating that sustainable our for have largest Group, XXXX. since been With we can in on business today. I'm us to the

We take happy to questions. will any now be

Operator

Global Jeff Alliance from The Partners. Instructions] comes question [Operator first Grampp with

Jeffrey Grampp

front wanted talk a looks the front. services on to particular. Production there first really on I the strong quarter like in It margin

margin confidence 'XX, prospectively in Just may profile? of hoping of kind to that continuation you of have dive into into looking forward maybe more what that the guys and a bit kind

Richard Murphy

and of said more the increased, has because gate, is is was competition, But the the rates. as so standby away, on XXXX, I because or before, tough. reality say business of bit of standby the right would pricing of weather either headwind. since gone Yes. getting consolidated a a -- and we're a the rates out has I lot Obviously,

oil of standby think we better 'XX. that definitely we're And So go rates just expect more rationalized of impact price to to to a would back the type seeing -- severe marketplace pervasive economic kind higher I some rates or it's Jeff. you continue, a think going decline that of hit, unless I marketplace. see this and don't but

Jeffrey Grampp

about that, guys last that. I months in on wasn't building drivers Can a month up, of of maybe first release mean friend talk I revenue kind the a tremendous had main QX. the press about And it weather of talking XX% being guys was you couple Understood. you driving there? in know

I assume understand more but that So gains share kind Enservco-specific to of pricing, just better hoping it's just market dynamic. or

Richard Murphy

Yes. impact remarks, of with has Colorado pricing scenario that's in weather and I -- that's Pennsylvania helped in improved a margin type the had. first obviously our Hot it's any mean if much and the think format I more better helped. quarter Rapid pricing has a we've deal, offset

basins activity X in Pennsylvania at basically point stronger but stronger So is production. combination for we basically little which have heating, -- this that's which Colorado, I say our a is Wyoming, would and the of

Jeffrey Grampp

you had. question my Great. teaming here Okay. up I And next keep for

Rapid is know I a big for of lot given focus here much that's lose well. too guys, deal that want on the obviously you deal I Hot, side on don't to a as I Buckshot that of mean So but

dynamics update you standpoint acquisition performance of if from meaningful if competitive just Appalachia? there. the and any a kind was fairly given integration So change in can you're seeing us maybe in And it competitive a curious that just on the

Richard Murphy

been The Marcellus it Yes. complete, nicely. shorter tremendous also better season. yard the is I -- the The out running has in a have who Hot now than mean Rapid guys the are always you West, it's integration and very but is done job. the a have went pricing integration

being job the key job we've good the standby should to basin -- And that long So that on for are. has very say, in wanting prices to where know standby a good I That team you on is new a the be rates. rates. term really done gas said, done

again, we helpful Pennsylvania some regard standby aspect. the have are did in but So rates headwinds to very weather that with this winter, in

And so pleasant surprise. been that's a

Operator

Showing would to questions. back conference Instructions] any remarks. turn question-and-answer I Rich further no the [Operator concludes This session. our to like Murphy for closing over

Richard Murphy

a you just everybody, thank I say employees, want It's shareholders. road. our long to to been

looking Rapid Buckshot the Hot, I with our a at XXXX -- think and the nice in we're and we're that's forward. remarks,

So and shareholders up with the be the of that, talk face forward to with communicating spring to you some in we of in rest the going our to catching more will few Group weeks. LPG And a we're with face and to look 'XX. Thanks. enjoy

Operator

has Thank conference The concluded. now presentation. you for attending today's

now may disconnect. You

Enservco (ENSV) 1 Apr 242023 Q4 Earnings call transcript