Fort Worth-based FTS International Inc. (FTSI) reported its financial and operational results for the fourth quarter and full year 2018 pm Feb. 27.
For the Fourth Quarter 2018 Compared to the Third Quarter 2018:
• Revenue was $248.1 million, down from $334.4 million
• Net income was $26.5 million, down from $49.6 million
• Earnings per share of $0.24, down from $0.45
Full Year 2018 Compared to Full Year 2017
• Revenue was $1,543.3 million, up from $1,466.1 million
• Net income was $258.4 million, up from $200.7 million
• Earnings per share was $6.54. Adjusting for the timing and impact of the IPO on accretion expense and total shares outstanding, earnings per share was $2.36
“Despite a more challenging market, we delivered solid results in the fourth quarter,” said Michael Doss, FTSI’s CEO. “Our adjusted EBITDA per fleet was higher than we initially expected even though we experienced lower pricing and more than normal white space in our operations calendar near year-end. We generated healthy free cash flow, allowing us to continue reducing our net debt.”
Average active fleets during the fourth quarter 2018 was 19.3, down from 21.8 in the third quarter 2018. The company exited the fourth quarter 2018 with 19 active fleets. The company has 20 fleets active today.
FTSI completed 6,038 stages during the fourth quarter 2018, or 313 stages per active fleet. This compares to 6,991 stages in the third quarter 2018, or 321 stages per active fleet.
Liquidity and Capital Resources
Capital expenditures were $15.6 million in the fourth quarter and $100.5 million in 2018, below the company’s previous estimate of $105-$110 million in 2018.
During the fourth quarter, the company repaid $57.1 million of debt to bring the total principal amount of debt outstanding to $507.9 million at year end. Subsequent to year end, FTSI repaid an additional $11.9 million of debt. FTSI intends to continue to repay debt with free cash flow generated in 2019.
At December 31, 2018, FTSI had $177.8 million of cash, resulting in net debt of $330.1 million. As of February 27, 2019, the availability under the company’s revolving credit facility was $106.1 million. During the fourth quarter 2018, the company had no borrowings outstanding under its revolving credit facility.
FTS International will hold a conference call on Feb. 28 to discuss the results.
FTS International is one of the largest providers of hydraulic fracturing services in North America