$KLXE reports record Q4 2022 results with $223.1M revenue & $5.1M net income.
Mar 8th 2023, 9:16 pm
Analyst Summary: Oilfield services provider, KLX Energy Services Holdings, Inc., reported record financial results for Q4 2022 ended December 31, 2022. KLX Energy's Q4 revenue was $223.1 million, signaling an 18% sequential increase. Further, their net income for Q4 stood at $5.1 million, with Adjusted EBITDA margin of $37.3 million. KLX Energy reported total debt of $283.4 million, showing a 4.4% decrease from the previous quarter. According to CEO, Amin J. Khoury, KLX's early 2022 strategic asset realignment yielded materially improved results throughout 2022. The company's key performance indicators facilitated the roadmap to drive price and utilization, while prudently managing its cost structure to achieve record revenue and margin growth. KLX Energy is largely trending ahead of 2019 levels for revenue and margins based on second-half 2022 annualized basis, thanks to its focus on driving price and capacity utilization. KLX Energy's outlook for Q1 2023 includes a natural transition in activity as operators ramp up their 2023 programs. However, the company expects the revenue decline from Q4 to Q1 to be less pronounced than prior years due to the continued tightness in the oilfield services market related to both equipment and crews. Note: KLX Energy Services Holdings has presented non-GAAP financial measures, including Adjusted EBITDA, free cash flow, net working capital, net leverage ratio, and their reconciliations to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. KLX has not provided reconciliations for future expectations as to Adjusted EBITDA or Adjusted EBITDA margin, as such reconciliations are not available without unreasonable efforts.