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EX-99.4 - EXHIBIT 99.4 - U.S. WELL SERVICES, INC.tv507025_ex99-4.htm
EX-99.3 - EXHIBIT 99.3 - U.S. WELL SERVICES, INC.tv507025_ex99-3.htm
EX-99.2 - EXHIBIT 99.2 - U.S. WELL SERVICES, INC.tv507025_ex99-2.htm
EX-21.1 - EXHIBIT 21.1 - U.S. WELL SERVICES, INC.tv507025_ex21-1.htm
EX-10.11 - EXHIBIT 10.11 - U.S. WELL SERVICES, INC.tv507025_ex10-11.htm
EX-10.10 - EXHIBIT 10.10 - U.S. WELL SERVICES, INC.tv507025_ex10-10.htm
EX-10.9 - EXHIBIT 10.9 - U.S. WELL SERVICES, INC.tv507025_ex10-9.htm
EX-10.8 - EXHIBIT 10.8 - U.S. WELL SERVICES, INC.tv507025_ex10-8.htm
EX-10.7 - EXHIBIT 10.7 - U.S. WELL SERVICES, INC.tv507025_ex10-7.htm
EX-10.6 - EXHIBIT 10.6 - U.S. WELL SERVICES, INC.tv507025_ex10-6.htm
EX-10.5 - EXHIBIT 10.5 - U.S. WELL SERVICES, INC.tv507025_ex10-5.htm
EX-10.4 - EXHIBIT 10.4 - U.S. WELL SERVICES, INC.tv507025_ex10-4.htm
EX-10.1 - EXHIBIT 10.1 - U.S. WELL SERVICES, INC.tv507025_ex10-1.htm
EX-4.1 - EXHIBIT 4.1 - U.S. WELL SERVICES, INC.tv507025_ex4-1.htm
EX-3.1 - EXHIBIT 3.1 - U.S. WELL SERVICES, INC.tv507025_ex3-1.htm
8-K - FORM 8-K - U.S. WELL SERVICES, INC.tv507025_8-k.htm

 

Exhibit 99.1

 

SELECTED HISTORICAL FINANCIAL INFORMATION OF USWS

 

The following table shows selected historical financial information of USWS for the periods and as of the dates indicated. The selected historical consolidated financial information of USWS as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 was derived from the audited historical consolidated financial statements of USWS included in the Proxy Statement. The selected historical interim condensed consolidated financial information of USWS as of September 30, 2018 and for the nine months ended September 30, 2018 and 2017 was derived from the unaudited interim condensed consolidated financial statements of USWS included elsewhere in this Current Report on Form 8-K.

 

USWS’ historical results are not necessarily indicative of future operating results. The selected consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations of USWS,” as well as the historical consolidated financial statements of USWS and accompanying notes included elsewhere in this Current Report on Form 8-K and in the Proxy Statement.

 

       Nine Months Ended       Twelve months Ended         
       September 30, 2017       December 31, 2017         
   Successor   Predecessor   Successor   Predecessor 
   Nine                         
   Months   February 2   January 1   February 2   January 1   Year   Year 
   Ended   through   through   through   through   Ended   Ended 
   September 30   September 30   February 1   December 31   February 1   December 31   December 31 
(in thousands)   2018   2017   2017   2017   2017   2016   2015 
  (unaudited)   (unaudited)   (unaudited)                 
Statement of Operations Data:                                   
Revenue  $530,411   $317,405   $32,867   $466,487   $32,867   $294,755   $415,131 
Costs and expenses:                                   
Cost of services (excluding depreciation and amortization)   427,243    270,614    28,053    394,125    28,053    262,311    324,731 
Depreciation and amortization   77,547    63,014    4,920    92,430    4,920    66,084    68,084 
Selling, general and administrative expenses   14,863    12,369    1,281    17,601    1,281    9,837    6,950 
Impairment loss on intangible assets   -    20,247    -    20,247    -    -    - 
Loss on disposal of assets   7,990    8,514    201    11,958    201    6,560    11,046 
Income (loss) from operations   2,768    (57,353)   (1,588)   (69,874)   (1,588)   (50,037)   4,320 
Interest expense, net   (21,672)   (15,673)   (4,067)   (22,961)   (4,067)   (45,376)   (37,364)
Other income (expense)   331    69    1    (787)   1    9    25 
Loss before income taxes   (18,573)   (72,957)   (5,654)   (93,622)   (5,654)   (95,404)   (33,019)
Provision for income taxes   -    -    -    -    -    -    - 
Net loss  $(18,573)  $(72,957)  $(5,654)  $(93,622)  $(5,654)  $(95,404)  $(33,019)
Balance Sheet Data (at end of period):                                   
Cash and cash equivalents  $20,799             $5,923        $5,192      
Property and equipment, net   276,423              251,288         197,512      
Total assets   436,461              407,596         246,895      
Total debt   257,062              264,594         300,633      
Total liabilities   407,978              363,333         369,847      
Total mezzanine equity   -              -         159,431      
Total members' equity (deficit)   28,483              44,263         (282,383)     
Cash Flow Statement Data:                                   
Net cash provided (used) by operating activities  $84,111   $20,401   $(2,777)  $47,284   $(2,777)  $22,219   $57,703 
Net cash used in investing activities   (50,546)   (43,336)   -    (71,565)   -    (18,792)   (94,213)
Net cash provided (used) by financing activities   (18,689)   26,920    1,473    26,316    1,473    1,765    26,984 
Other Financial Data                                   
EBITDA  $80,646   $5,730   $3,333   $21,769   $3,333   $16,056   $72,429 
Adjusted EBITDA (1)  $97,915   $43,281   $4,628   $67,729   $4,628   $24,692   $85,754 

 

 

(1)EBITDA and Adjusted EBITDA are non-GAAP financial measures. For a definition of EBITDA and Adjusted EBITDA and a reconciliation of EBITDA and Adjusted EBITDA to net income, see “— Non-GAAP Financial Measures” below.

 

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Non-GAAP Financial Measures

 

EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered as a substitute for net income (loss), operating income (loss) or any other performance measure derived in accordance with United States generally accepted accounting principles (“GAAP”) or as an alternative to net cash provided by operating activities as a measure of USWS’ profitability or liquidity. USWS’ management believes EBITDA and Adjusted EBITDA are useful because they allow external users of its consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate its operating performance, compare the results of its operations from period to period and against USWS’ peers without regard to USWS’ financing methods, hedging positions or capital structure and because it highlights trends in USWS’ business that may not otherwise be apparent when relying solely on GAAP measures. USWS presents EBITDA and Adjusted EBITDA because it believes EBITDA and Adjusted EBITDA are important supplemental measures of its performance that are frequently used by others in evaluating companies in its industry. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income (loss) and may vary among companies, the EBITDA and Adjusted EBITDA USWS presents may not be comparable to similarly titled measures of other companies. USWS defines EBITDA as earnings before interest, income taxes, depreciation and amortization. USWS defines Adjusted EBITDA as EBITDA excluding the following: loss on disposal of assets; non-productive time; unit-based compensation; fleet start-up and relocation costs; restructuring and transaction related costs; and impairment loss.

 

The following table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, USWS’ most directly comparable financial measure calculated and presented in accordance with GAAP.

 

       Nine Months Ended       Twelve months Ended         
       September 30, 2017       December 31, 2017         
   Successor   Predecessor   Successor   Predecessor 
   Nine                         
   Months   February 2   January 1   February 2   January 1   Year   Year 
   Ended   through   through   through   through   Ended   Ended 
   September 30   September 30   February 1   December 31   February 1   December 31   December 31 
(in thousands)   2018   2017   2017   2017   2017   2016   2015 
Net loss  $(18,573)  $(72,957)  $(5,654)  $(93,622)  $(5,654)  $(95,404)  $(33,019)
Interest expense, net   21,672    15,673    4,067    22,961    4,067    45,376    37,364 
Income tax expense   -    -    -    -    -    -    - 
Depreciation and amortization   77,547    63,014    4,920    92,430    4,920    66,084    68,084 
EBITDA   80,646    5,730    3,333    21,769    3,333    16,056    72,429 
Loss on disposal of assets (a)   7,990    8,514    201    11,958    201    6,560    11,046 
Non-productive time (b)   1,200    -    -    -    -    -    - 
Unit-based compensation (c)   2,803    3,668    -    4,546    -    -    42 
Fleet start-up and relocation costs (d)   1,717    2,542    -    4,190    -    -    1,660 
Restructuring and transaction related costs (e)   2,265    2,580    1,094    5,019    1,094    2,076    577 
Impairment loss (f)   -    20,247    -    20,247    -    -    - 
Fleet 6 fire (g)   1,294    -    -    -    -    -    - 
                                    
Adjusted EBITDA  $97,915   $43,281   $4,628   $67,729   $4,628   $24,692   $85,754 

 

 

(a)Represents losses on the disposal of property and equipment.

 

(b)Represents revenue shortfall associated with non-productive time due to sand mine issues with a customer. USWS is in the process of amending the customer contract to provide that the customer will reimburse for similar issues prospectively.

 

(c)Represents non-cash stock-based compensation.

 

(d)Represents non-recurring costs related to the start-up and relocation of hydraulic fracturing fleets.

 

(e)Represents non-recurring third-party professional fees and other costs including costs related to the capital restructuring and the potential sale of USWS.

 

(f)Represents a non-cash impairment loss with respect to intangible assets.

 

(g)Represents non-recurring costs related to a fleet fire.

 

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