NASDAQ$KLXE

KLX Energy Services Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

KLX Energy Services Holdings, Inc. reported a net loss for Q4 2023, but annual revenue, Adjusted EBITDA, and free cash flow reached record levels.

KLX Energy Services Holdings, Inc. reported Q4 2023 financial results, including revenue of $194 million and a net loss of $(9) million. Despite the quarterly loss, the company achieved record annual revenue, Adjusted EBITDA, and free cash flow for the full year 2023.

  • Revenue for the fourth quarter of 2023 totaled $194 million, a decrease of 12.0% compared to the third quarter.
  • Net loss for the fourth quarter of 2023 was $(9) million, compared to fourth quarter 2022 net income of $13.2 million.
  • Adjusted EBITDA for the fourth quarter of 2023 was $23.0 million, compared to fourth quarter 2022 Adjusted EBITDA of $37.3 million.
  • Adjusted EBITDA margin for the fourth quarter of 2023 was 11.8%, compared to fourth quarter 2022 Adjusted EBITDA margin of 16.7%.

Headline financials

Total Revenue

$194M

Previous: $223M-13.0%
EPS (adj)

-$0.54

Previous: $1.06-150.9%
Adjusted EBITDA

$23M

Previous: $37.3M-38.3%
Capital Expenditures

$12.8M

Previous: $9.5M+34.7%
Net Income

-$9.2M

Previous: $13.2M-169.7%
Operating Income

$2M

Previous: $22.2M-91.0%
Gross Profit

$22.2M

Previous: $56.7M-60.8%
R&D Expense

$400K

No prior period
Stock-Based Comp

$700K

Previous: $800K-12.5%

Revenue & EPS history

KLX Energy Services · Revenue · Quarterly

$194M

Q4 2023-13%vs Q4 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

KLX Energy Services · $221M total across 3 segments · Q3 2023

  • Southwest
    $77.8M+13.6%
  • Rocky Mountains
    $77M+15.8%
  • Northeast/Mid-Con
    $65.8M-24.0%

Forward guidance

The company expects the first quarter results to be negatively impacted by normalized seasonality, the Polar Vortex in January and safety standdowns for two separate customers due to non-KLX safety incidents. Based on current schedules, KLX expects to exit the first quarter on a strong monthly run-rate and to approach 2023 levels of quarterly revenue and Adjusted EBITDA in the second quarter and beyond.

Tailwinds

  • Expect to exit the first quarter on a strong monthly run-rate
  • Approach 2023 levels of quarterly revenue in the second quarter and beyond
  • Approach 2023 levels of Adjusted EBITDA in the second quarter and beyond
  • Forward natural gas strip is highly constructive into 2025 and 2026 due to the much-anticipated incremental LNG offtake demand
  • Global LNG demand is expected to double over the next two years and we believe this increase will drive incremental natural gas-directed activity that will ultimately lift and support service pricing and utilization across all basins

Headwinds

  • First quarter results to be negatively impacted by normalized seasonality
  • First quarter results to be negatively impacted by the Polar Vortex in January
  • First quarter results to be negatively impacted by safety standdowns for two separate customers due to non-KLX safety incidents

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 Q4 2023

Historical avgQ4 2023

-2.4%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-7.0%

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%
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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