ENSV - Earnings call transcript Q2 2024

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Operator

Good morning, everyone, and welcome to the Enservco 2024 Second Quarter Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Wes Harris. Sir, the floor is yours.

Wes Harris

Well, thank you, Matthew, and good morning, everyone. Financial Second today Conference Executive are Mark our XXXX of on Chairman; Enservco Patterson, company the Rich Chief to Quarter Call. Presenting Earnings behalf and Welcome Officer. Murphy, our

filings could recent discussed that also well and differ no most in I in obligation would earnings actual GAAP statements the are subject references the uncertainties with financial and non-GAAP as disclosed includes subsequent on based become are of this from as assumes assumptions most its may estimates, forward-looking under and are update today's contained certain those include in of that to projections statements that company's during to XX-K non-GAAP management's of the The certain cause note anticipated to as results business Reconciliations financial forward-looking to measures to call untrue subject other and directly measures. Enservco call forward-looking matters these our XX-Q that date SEC. measures conference to company's statements. comparable risks is risks because materially events. This release.

webcast a release. available of webcast will the call available in the Finally, call. accessing for the today's after earnings Instructions be replay are

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

Richard Murphy

good in XX% call. Consistent an and improved a performance EBITDA everyone. with Wes, year-over-year our including morning, joining quarter adjusted today's you improvement reflect results Thanks, the loss. our We success, us for appreciate second first quarter our across board,

financially year been the most significant and this nature to seasonal has the As fourth profitability. terms a of and reminder, each quarters has our very in cold dependent, historically weather business first led being

third significant of comments, the a the second strategic hard has of reposition dedication for but with discuss along their been transactions. the by second the Directors, team the in week the efforts paid and to closing in quarter to of details marketplace. the most And in full the everyone number I his extended our the last While off of to for and All in thank the the Board company I, quarter I'll support work the collective date of to want process. let Mark critical believe achievement this financial

we frac focus past the our evaluating on to on initiatives and We Dakota, the effort the fourth reliance that months, an underperforming our real heating quarter XX and rationalize equipment impacting North base. we has negatively North several spent Dakota. financial and reducing as sold considerable This For services which exited designed certain part executing position estate profitability. a water included of asset our been enhance in further XXXX, businesses. In in of market heating seasonal strategic was exit

efforts, the this to take into executed and we rightsize these XXXX. In out business, on opportunities addition to and of costs several carried

the customer for was enhancement well margins. balance the into ways from focus our our that services entered quarter, on to frac while improved in financial seasonal position recognized as the improved to and margins share cash subject logistics have short, to is of improve second financial heating environment and announced to Enservco Sims We In would our generates sheet important, operate. We immediately we expanded accretive our in necessary Jim quarter an owners, not and deliver or on pricing company and Tony carried as we increase into year's we market note in to not base stockholders. We prospects in previous less And flow continue want deleverage that the that substantial transition the consistent water improving I XXXX footing market growth a share will first our this efforts to closed the capital. Most team a Buckshot business conditions basins additional We to energy as towards view asset where and of welcome and significant benefited to with value family. base. Buckshot profitability and the operational multifaceted Enservco require the overhead acquisition recently to due seasonal on and we an flow better Buckshot step in XXXX as I as focus Fate, cash March year-round getting consistent welcomed the great as new rest Trucking. transitioning as business strong more generator that well [indiscernible].

sale frac to to focused with Complemented debt Colorado-based net of pay to opportunities reduce continue the including Buckshot obligations, focus certain assets, on recently the reliance a by evaluate businesses. Utica specific facility. proceeds of the our we XXXX, down on water the seasonally Waves heating In Heat used we announced company's the acquisition, being

the Importantly, remaining our water heating business. frac to Rapid basins, bolstered last in Marcellus/Utica acquisition heating the be results year's to share paydown, region. improvement restructure engage frac following operating not will with hot Utica across we completely services and market to both continue facility. To to expect provide where Hot are in we clear, exiting the and the water the company contributed The significant oiling

This debt Star long-term announced partnership also strategic facilitate and Holdings, the growth Star the financing of future agreement used including potential recently the on with commitment for with Equity investments aligns respective the company excellence. and of an a agreement to Buckshot companies We a Star's closing to and operational between equity acquisition. exchange closing short-term help a

leadership to Star's our Coleman, strengthens CEO the Director, Directors. with and oversight it addition Rick and Board of of Enservco's addition, In

Last and improved for to regain improvement Partners along certainly our conversions River sheet. with our with required that's debt at Enservco least, the American. for and standards. We with American forward Cross from balance equity discussions to This metrics a NYSE NYSE Buckshot shareholder key provides transactions the significant in the enhancement with look continuing compliance listing not equity position Star the

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

Mark Patterson

Rich. Thank you,

board, Rich benefiting from the given winter across to compared quarter in period second levels longer with pricing, increased are closing and post and X which XX outlined, once activity improved As in Rich ended recent our second to results, are of again discussed, half believe improved future quarter of we transactions and XXXX. Having performance quarterly not that, same the for June the will financial said pleased year-over-year beginning the X the we be improvement indicative months of second multiple materially the XXXX.

folks our more performing XX-Q that as and As results as discussion documents recently a And details financial concerning be historical will filed quarter result, today point and our operating would other I well for my SEC our limited. concerning to of Buckshot. second

revenue period. slightly of quarter namely up the XXXX, acidizing the completion the it loss from the were loss primarily Both XXXX services lower Production and a second in share diluted offset $X.XX were of impacted $X.XX revenue, last the and increase quarter Completion Services partially of was same million $X.X net Production quarter by million, second diluted Services second in $X.X or million share year. relative activity lower in $X.X revenue in primarily was with the Our coming quarter levels. Net revenues by was versus revenue, per or

loss improvement compared second quarter a of $XXX,XXX, EBITDA the million adjusted of XXXX. quarter year-over-year and loss second of That's a in to Our was XX%. $X.X

evaluate execute we'll our continue We that the and to reduce remain opportunities focused very business and on across business. cost rightsizing

further growth. Turning this of and debt portfolio, on improved our discussed business material in progress position of through in levels. year, financial executed recently we to reducing made have the the transactions balance and to the company, XX remain our sheet. In financial June Rich various the focused improvement We XXXX position materially we

transactions Our XXXX improvement with quarter X net third of will financial a from financial benefit full the a quarter of of looking and for benefit further fourth. in material line, XXXX. operating the from and remainder around in stronger collective Bottom months much impact we're

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

Richard Murphy

you, Thank Mark.

and integration for Our be people, remainder primary existing operations ensuring Buckshot's seamless businesses. a year the into focus our will of the assets of

will the already initiatives. team Buckshot identified We closely with near-term growth to work execute

past detail. What and operating base through to and rationale I performance won't is predictable through transactions reposition I collective benefits our strategic August culmination recently and go say efforts would improve by would our more each represent discussing years encourage flow. materially the over transactions closed. we XX these I respective afforded to the and everyone the in of more X drive read announcements our asset all X.X announcements the cash the that of to strategic

with transactions. regaining We American standards by incremental compliance the focused shareholders' equity, NYSE recent on remain listing collective also evidenced by the driven

short, In prove stockholders. the believe X.X to will true we creator the be value repositions, for Enservco

the to position past enter position in in and country. demand. In across its our be strong efforts and over focused of executing more enhance a we and model, build additional our a Combined designed conclusion, as the the and year energy we are sustainable assets and financial position prudent visibility multifaceted a we We rightsize growth further increased opportunities capitalize the we strategic business, rationalize enhance offerings in the the position, the further service for good logistics on XXXX plan company to are performance operations business of benefit meet our our our optimize remain stockholders. and promote financial to with on will to for our confident

the again us questions. any With joining take now today. on thanks happy Operator? call to for We'll that, be

Operator

Instructions] Alliance from Grampp [Operator Your from is coming Partners. Global question first Jeff

Jeffrey Grampp

how a on 'XX, of level? far? at about business, some past if is but you we 'XX get logistics that we over could maybe, have has at that performing little a the thus outlook for can business -- high level, And what talk at least remainder of a kind been business I'm bit your just curious I info know high into historical the

Richard Murphy

Okay.

business let trailing is brokerage little we've million does that million a So a trucks revenue, That's about, here $X.X XX EBITDA. I'll has XX, $X over XX well. that no in approximately, Mark months But work. got over say, as let's jump

a has and world over brokerage in an got Mark second, the it So pass in of trucking. he's Mark -- to expertise I'll

enhance big you to us organic over us. And And base nice and with right new I'll brokerage a with an actually have doing a up pass build on of Do opportunity then anything front entering is. able it EBITDA and real the asset They're bit, overlay a from we revenues where decent million. going when we add? growth $X it in opportunity Mark. have really the markets, we to clip. we But anything They now. have little some that to the without to were Buckshot improving have at brokerage are those they So

Mark Patterson

Yes.

very and lot very for the What then broader that carriers, business and of partner introduce of oil There's We've complement not energy entities has in other Buckshot them help tested be been to say do company do we led and and just is Buckshot. and waters by in them a solid other now of that is sector, Buckshot. be guys. So throughout wind built a area. demand capacity acceptance also to with solar. and of able services And couple enthusiastic, talented market want very and to gas is the There's a lot continue the able to to the have we expand. with a all yes really but

So in EBITDA. influenced That roughly basis, that's are. The XX million, kind $X.X company. revenue of trailing $X private over where million a EBITDA are a is said, the Rich million as we little at on numbers in $X

going So it not around the side entity. bit run a forward private as will a skinny as be it's little expense

Jeffrey Grampp

bit of I little brokerage more details. business or goalposts terms have kind or guys you some could see Do Understood. in that timeline contribution rough when tangible be appreciate of kind of from those that? a a

Richard Murphy

don't you that? why Mark, take

Mark Patterson

Jim of business and partner had well them Yes. with that at in those are brokerage with We've trucking to turn the and away connected them it. some hand. situated on industry opportunities. that have companies loads can accept Tony The is some

the business quick, heating some and well of us, relatively to are and So and bond and quickly. "Hey, ready companies could X X their in we the than activity in of very the existing as guys response it widely are more will things on Enservco well-known to ramp do anything is, own. We their as on congratulating brokerage to that And their company, really the we customer frac gone brokerage carriers call capture water has the a historically had think ready." demand They company It's one partnerships hotshot the base demand Buckshot and were clients at insurance. then direct. have So it very authority, yesterday as weeks, But you or not gotten through accepted their could from all the on go that's positioned. been a Those as hand, well tap hadn't their out else, into very And place. got increase. large our we're site Colorado. all through and it able to do can the be we within want we co-brokerage, with other very soon

Richard Murphy

they as and far and would, business. Rockies. maybe in And And of Jourdanton do much business oiling don't I the Texas. Colorado, Wyoming, I Jeff, to Rockies I say where think say our XX% is that hot as Carrizo XX% about about have and in Dakota, They North we their do

So market tap into that's pretty Texas. MSAs in presence Southwest Utica with have the Marcellus. We a customers tap can in don't quick. in we the They about could a XX and

organic I would said, in going business be the be brokerage Mark to be, there's to markets. huge -- but be So these as going some a opportunity, mean there's for think, I opportunity growth is to going

Jeffrey Grampp

those Great. I details. all appreciate

hot side. the on oiling follow-up my For

there's things installation update concessions, bit temperature maybe on demand have Rich, a well wondering standpoint service, seeing both more some about pricing that seen from on a the you're on We've in market? if from a there, just any niche nature. But some curious, there service an as overall as companies of some and given what just industry commentary Just market of a bit the little share market, pricing. check you good guys get

Richard Murphy

pushing no seeing run Yes. we Jeff, I like always our actually monthly would in -- say, $X.X we're rate that We're -- said continues million as in to or past, it continues the market. Hot price to run revenue a oiling I I million $XXX see say, concessions. a

sell very generates there's to to driver there's hot And so, in think didn't want It synergies real we're continues to in It's we expand reason happy to I'm that going with all-year-round when nice. that business. are yes, oiling actually obviously into And try business But that MSAs It's market the to we additional that it. complemented it's markets. continue we're flow. in. the run an some Buckshot Buckshot, continue the cash I yes, and maybe now, and business, with synergistic. right to But dominate with

Operator

our back Q&A go conference Please closing now will I to Murphy concludes That for ahead. the remarks. session. Rich hand

Richard Murphy

there to patient the the shareholders. want just start a this get today. into we thank grow I we're a Yes. company been and to shareholders, where can grind really It's position to X-year again,

I we get to make stock the really we'll hard reflects time, certainty. I think cash don't excited. over the that So that think a flow, all work in put here. But

Buckshot. So with again, guys I and updating thanks, to got again, look you on we all forward in care. the with quarter going Take next

Operator

event. Thank concludes you. this Everyone, today's

have You may for your you time, disconnect Thank at participation. this day. and a wonderful

Enservco (ENSV) 15 Aug 242024 Q2 Earnings call transcript