NASDAQ$KLXE

KLX Energy Services Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record results since the merger due to increased demand and pricing for services, driven by a constructive market despite commodity price volatility.

KLX Energy Services Holdings, Inc. reported strong third-quarter results with a 20% sequential increase in revenue to $221.6 million. Net income was $11.1 million, with EPS of $0.96 per share. Adjusted EBITDA increased by 113% sequentially to $37.1 million, representing a 16.7% margin. The company generated $18.5 million in net cash flow from operating activities and ended the quarter with $41.4 million in cash.

  • Revenue of $221.6 million, increased 20% sequentially.
  • Net income of $11.1 million, a $18.6 million sequential increase, and EPS of $0.96/share.
  • Adjusted EBITDA of $37.1 million, a 113% sequential increase.
  • Generated $18.5 million in net cash flow provided by operating activities, a $26.9 million sequential increase.

Headline financials

Total Revenue

$222M

Previous: $139M+59.4%
EPS (adj)

$0.96

Previous: -$2.19+143.8%
Adjusted EBITDA

$37.1M

No prior period
Adjusted EBITDA Margin

16.7%

No prior period
Net Working Capital

$62.9M

No prior period
Capital Expenditures

-$12.5M

Previous: -$1.8M-594.4%
Free Cash Flow

-$1.4M

Previous: -$20.6M+93.2%
Net Income

$11.1M

Previous: -$18.8M+159.0%
Operating Income

$20.4M

Previous: -$10.4M+296.2%
Gross Profit

$52.8M

Previous: $18.3M+188.5%
Cash & Equivalents

$41.4M

Previous: $40.8M+1.5%
Total Assets

$440M

Previous: $355M+24.0%
Stock-Based Comp

$700K

Previous: $900K-22.2%

Revenue & EPS history

KLX Energy Services · Revenue · Quarterly

$222M

Q3 2022+59.4%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

KLX Energy Services · $222M total across 3 segments · Q3 2022

  • Northeast/Mid-Con
    $86.6M+52.7%
  • Southwest
    $68.5M+49.6%
  • Rocky Mountains
    $66.5M+82.2%

Forward guidance

The company expects a seasonally strong fourth quarter with flat to slightly up sequential revenue and an Adjusted EBITDA margin of 15% to 17%.

Tailwinds

  • Continued strength in commodity prices.
  • Operator reluctance to relinquish efficient service providers.
  • Transition from 2022 programs to 2023 programs.
  • Favorable macro backdrop.
  • Net pricing improvements.

Headwinds

  • Product line mix shifts.
  • Typical seasonality.
  • Transitory regulatory events in the Rocky Mountains.
  • Regulatory events to a lesser extent in the Northeast.
  • Ever-volatile commodity price backdrop

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-2.4%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-7.6%

Avg return

30 days after

39%

13 / 33 earnings

Positive

+28.4%

Q1 2020

Best reaction

-27.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.4%-2.3%-26.4%
Q4 2025-9.2%-12.0%+35.6%
Q3 2025-8.3%-11.7%-15.7%
Q1 2025-15.0%-4.3%-14.6%
Q4 2024-6.0%-7.8%-54.2%
Q3 2024-5.8%-2.4%+33.7%
Q2 2024+5.6%+5.6%+8.0%
Q1 2024-9.7%-16.5%-29.5%
Q4 2023-1.7%-8.9%-19.8%
Q3 2023-6.6%-6.1%-12.3%
Q2 2023+7.5%+2.3%+1.0%
Q1 2023+12.0%+8.5%-4.9%
Q4 2022+7.6%-6.6%-15.1%
Q3 2022-5.3%-3.1%-23.9%
Q2 2022+15.0%+10.8%+16.1%
Q1 2022-5.3%-23.1%+25.0%
Q4 2021-8.7%-25.8%-45.2%
Q3 2021-11.4%-22.8%+6.9%
Q2 2021+0.5%-11.6%-22.0%
Q1 2021-22.0%-28.9%-34.7%
Q4 2020-26.2%-43.0%-13.9%
Q3 2020+6.5%-4.0%-6.5%
Q2 2020-14.8%-15.2%-47.2%
Q1 2020+28.4%+66.7%+3.4%
Q4 2019-27.4%-19.0%-37.4%
Q3 2019+4.7%+31.8%+4.2%
Q2 2019-10.3%-6.3%-12.0%
Q1 2019-9.2%-9.2%-16.5%
Q1 2017-5.3%-2.0%+5.6%
Q4 2017-5.3%-2.0%+5.6%
Q4 2018+4.4%-0.6%+14.0%
Q3 2018+27.4%+26.0%+22.9%
Q2 2018+5.4%+5.6%+18.2%

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