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Cactus Announces Fourth Quarter and Full Year 2021 Results

Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the fourth quarter and full year 2021.

Fourth Quarter 2021 Highlights

  • Revenue of $129.9 million and income from operations of $25.7 million;
  • Net income of $20.4 million(1) and diluted earnings per Class A share of $0.25(1);
  • Adjusted net income(3) of $18.7 million, and diluted earnings per share, as adjusted(3) of $0.25;
  • Net income margin of 15.7% and adjusted net income margin(3) of 14.4%;
  • Adjusted EBITDA(4) and Adjusted EBITDA margin(4) of $36.6 million and 28.2%, respectively;
  • Cash flow from operations of $11.7 million;
  • Cash balance of $301.7 million with no bank debt outstanding as of December 31, 2021; and
  • In January 2022, the Board of Directors (the “Board”) declared a quarterly cash dividend of $0.11 per share.

Financial Summary

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2021

 

2021

 

2020

 

2021

 

2020

 

($ in thousands)

 

($ in thousands)

Revenues

$

129,916

 

 

$

115,363

 

 

$

68,090

 

 

$

438,589

 

 

$

348,566

 

Income from operations

$

25,712

 

 

$

20,766

 

 

$

8,423

 

 

$

75,427

 

 

$

70,039

 

Net income(1)(2)

$

20,383

 

 

$

17,177

 

 

$

6,136

 

 

$

67,470

 

 

$

59,215

 

Net income margin(3)

 

15.7

%

 

 

14.9

%

 

 

9.0

%

 

 

15.4

%

 

 

17.0

%

Adjusted net income(3)

$

18,666

 

 

$

14,736

 

 

$

6,287

 

 

$

54,497

 

 

$

55,179

 

Adjusted net income margin(3)

 

14.4

%

 

 

12.8

%

 

 

9.2

%

 

 

12.4

%

 

 

15.8

%

Adjusted EBITDA(4)

$

36,614

 

 

$

32,002

 

 

$

19,844

 

 

$

120,355

 

 

$

121,022

 

Adjusted EBITDA margin(4)

 

28.2

%

 

 

27.7

%

 

 

29.1

%

 

 

27.4

%

 

 

34.7

%

(1)

Net income during the fourth quarter of 2021 is inclusive of $1.9 million in other income related to the revaluation of the tax receivable agreement ("TRA") liability as well as $1.3 million of income tax expense related to the revaluation of our deferred tax asset. Net income during the third quarter of 2021 is inclusive of a $0.7 million income tax benefit associated with a partial release of a valuation allowance in connection with the redemption of units (“CW Redemption”) in Cactus Wellhead, LLC (“Cactus LLC”) and a $0.5 million income tax benefit related to the finalization of our 2020 tax returns.

(2)

Net income for the full year 2021 is inclusive of $0.9 million in additional income related to the revaluation of the TRA liability, $0.4 million in offering related expenses and $8.6 million in net tax benefits associated with various non-routine items, primarily a partial release of a valuation allowance. Net income for the full year 2020 is inclusive of $1.9 million in non-routine charges related to severance and $0.6 million in expense related to the revaluation of the TRA liability.

(3)

Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in Cactus Wellhead, LLC (“Cactus LLC”), its operating subsidiary, at the beginning of the period. Additional information regarding non-GAAP measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables.

(4)

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See definition of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables.

Scott Bender, President and CEO of Cactus, commented, “We were pleased to deliver strong sequential revenue growth during the fourth quarter. In our Product revenue category, market share(1) remained strong as public operators began adding rigs, following months of activity increases driven primarily by private operators. Product margins improved sequentially, highlighting our ability to execute and the value proposition we provide to customers. Rental revenue growth meaningfully exceeded the change in domestic completion activity.

“Looking ahead to the first quarter of 2022, we anticipate continued revenue growth across all of our business lines. The current commodity price environment remains supportive, and we expect the pace of rig additions to remain near levels experienced over the last several months. While inflationary pressures persist, differentiated suppliers remain better able to recover costs from a healthy customer base. Significant growth is expected in our Rental revenue category in early 2022 as the supply and demand dynamics in this market start to improve.”

Mr. Bender concluded, “All signs currently point toward continued oilfield activity gains to start the year. Our team’s foresight and ability to overcome issues within the global supply chain have Cactus well prepared to respond to increased demand for equipment and services. We remain optimally positioned due to our market leadership, supply chain flexibility and fortress balance sheet. As activity improves, we will also maintain our steadfast focus on margins and returns. With this in mind, our board recently approved a 10% increase in our quarterly dividend to $0.11 per share.”

(1)

Additional information regarding market share and rigs followed is located in the Supplemental Information tables.

Revenue Categories

Product

 

Three Months Ended

 

December 31,

 

September 30,

 

December 31,

 

2021

 

2021

 

2020

 

($ in thousands)

Product revenue

$

83,771

 

 

$

74,835

 

 

$

43,020

 

Gross profit

$

29,017

 

 

$

25,127

 

 

$

13,268

 

Gross margin

 

34.6

%

 

 

33.6

%

 

 

30.8

%

Fourth quarter 2021 product revenue increased $8.9 million, or 11.9%, sequentially, as sales of wellhead and production related equipment increased primarily due to higher customer drilling activity. Gross profit increased $3.9 million, or 15.5%, sequentially, with margins increasing 100 basis points driven largely by successful initiatives to compensate the Company for higher cost of goods sold related to inflation.

Rental

 

Three Months Ended

 

December 31,

 

September 30,

 

December 31,

 

2021

 

2021

 

2020

 

($ in thousands)

Rental revenue

$

19,225

 

 

$

15,271

 

 

$

8,590

 

Gross profit (loss)

$

4,672

 

 

$

2,021

 

 

$

(826

)

Gross margin

 

24.3

%

 

 

13.2

%

 

 

(9.6

)%

Fourth quarter 2021 rental revenue increased $4.0 million, or 25.9%, sequentially, due to increased usage of our rental equipment during the quarter. Gross profit increased $2.7 million sequentially and margins improved by 1,110 basis points due largely to higher revenues together with lower depreciation expense relative to revenue.

Field Service and Other

 

Three Months Ended

 

December 31,

 

September 30,

 

December 31,

 

2021

 

2021

 

2020

 

($ in thousands)

Field service and other revenue

$

26,920

 

 

$

25,257

 

 

$

16,480

 

Gross profit

$

4,884

 

 

$

5,767

 

 

$

4,957

 

Gross margin

 

18.1

%

 

 

22.8

%

 

 

30.1

%

Fourth quarter 2021 field service and other revenue increased $1.7 million, or 6.6%, sequentially, as customer activity drove an increase in associated billable hours and ancillary services. Gross profit decreased $0.9 million, or 15.3%, sequentially, with margins decreasing by 470 basis points due to reduced labor utilization associated with holidays and the onboarding of new associates during the period.

Selling, General and Administrative Expenses (“SG&A”)

SG&A for the fourth quarter of 2021 was $12.9 million (9.9% of revenues), compared to $12.1 million (10.5% of revenues) for the third quarter of 2021 and $9.0 million (13.2% of revenues) for the fourth quarter of 2020. The sequential increase was primarily due to higher bonus accruals related to the Company's improved financial performance and higher employee benefits expenses.

Liquidity, Capital Expenditures and Other

As of December 31, 2021, the Company had $301.7 million of cash and no bank debt outstanding. Operating cash flow was $11.7 million for the fourth quarter of 2021. During the fourth quarter, the Company made dividend payments and associated distributions of $7.6 million.

Net cash used in investing activities represented $3.2 million during the fourth quarter of 2021. Net capital expenditures for the full year 2021 were $11.6 million. For the full year 2022, the Company expects net capital expenditures to be in the range of $20 million to $30 million.

Quarterly Dividend

In January 2022 the Board approved and the Company announced the payment of a cash dividend of $0.11 per share of Class A common stock to be paid on March 17, 2022 to holders of record of Class A common stock at the close of business on February 28, 2022. A corresponding distribution of up to $0.11 per CW Unit has also been approved for holders of CW Units of Cactus Wellhead, LLC.

Conference Call Details

The Company will host a conference call to discuss financial and operational results on Monday, February 28, 2022 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus’ website at www.CactusWHD.com. Institutional investors and analysts may participate by dialing (833) 665-0603. International parties may dial (929) 517-0394. The access code is 1061607. Please access the webcast or dial in for the call at least 10 minutes ahead of start time to ensure a proper connection. An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.

About Cactus, Inc.

Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment. Cactus operates service centers in the United States, which are strategically located in the key oil and gas producing regions, including the Permian, Marcellus, Utica, Haynesville, Eagle Ford, Bakken and SCOOP/STACK, among other areas, and in Eastern Australia. Cactus also conducts rental and service operations in the Kingdom of Saudi Arabia.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement.

Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited)

 

 

Three Months Ended

December 31,

 

Twelve Months

Ended December 31,

 

2021

 

2020

 

2021

 

2020

 

(in thousands, except per share data)

Revenues

 

 

 

 

 

 

 

Product revenue

$

83,771

 

 

$

43,020

 

 

$

280,907

 

 

$

206,801

 

Rental revenue

 

19,225

 

 

 

8,590

 

 

 

61,629

 

 

 

66,169

 

Field service and other revenue

 

26,920

 

 

 

16,480

 

 

 

96,053

 

 

 

75,596

 

Total revenues

 

129,916

 

 

 

68,090

 

 

 

438,589

 

 

 

348,566

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Cost of product revenue

 

54,754

 

 

 

29,752

 

 

 

189,083

 

 

 

131,728

 

Cost of rental revenue

 

14,553

 

 

 

9,416

 

 

 

54,377

 

 

 

49,077

 

Cost of field service and other revenue

 

22,036

 

 

 

11,523

 

 

 

73,681

 

 

 

56,143

 

Selling, general and administrative expenses

 

12,861

 

 

 

8,976

 

 

 

46,021

 

 

 

39,715

 

Severance expenses

 

 

 

 

 

 

 

 

 

 

1,864

 

Total costs and expenses

 

104,204

 

 

 

59,667

 

 

 

363,162

 

 

 

278,527

 

Income from operations

 

25,712

 

 

 

8,423

 

 

 

75,427

 

 

 

70,039

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

(142

)

 

 

(150

)

 

 

(774

)

 

 

701

 

Other income (expense), net

 

1,902

 

 

 

 

 

 

492

 

 

 

(555

)

Income before income taxes

 

27,472

 

 

 

8,273

 

 

 

75,145

 

 

 

70,185

 

Income tax expense

 

7,089

 

 

 

2,137

 

 

 

7,675

 

 

 

10,970

 

Net income

$

20,383

 

 

$

6,136

 

 

$

67,470

 

 

$

59,215

 

Less: net income attributable to non-controlling interest

 

5,359

 

 

 

2,934

 

 

 

17,877

 

 

 

24,769

 

Net income attributable to Cactus, Inc.

$

15,024

 

 

$

3,202

 

 

$

49,593

 

 

$

34,446

 

 

 

 

 

 

 

 

 

Earnings per Class A share - basic

$

0.25

 

 

$

0.07

 

 

$

0.90

 

 

$

0.73

 

Earnings per Class A share - diluted (a)

$

0.25

 

 

$

0.07

 

 

$

0.83

 

 

$

0.72

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

58,988

 

 

 

47,610

 

 

 

55,398

 

 

 

47,457

 

Weighted average shares outstanding - diluted (a)

 

76,148

 

 

 

47,985

 

 

 

76,107

 

 

 

75,495

 

(a)

Dilution for the three and twelve months ended December 31, 2021 includes an additional $5.6 million and $18.8 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 27.0% and 16.7 million and 20.3 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Dilution for the twelve months ended December 31, 2020 includes $26.2 million of additional pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 24.0%, and 27.9 million weighted average shares of Class B common stock plus the dilutive effect of restricted stock unit awards.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 

 

December 31,

 

December 31,

 

2021

 

2020

 

(in thousands)

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

301,669

 

$

288,659

Accounts receivable, net

 

89,205

 

 

44,068

Inventories

 

119,817

 

 

87,480

Prepaid expenses and other current assets

 

7,794

 

 

4,935

Total current assets

 

518,485

 

 

425,142

 

 

 

 

Property and equipment, net

 

129,117

 

 

142,825

Operating lease right-of-use assets, net

 

22,538

 

 

21,994

Goodwill

 

7,824

 

 

7,824

Deferred tax asset, net

 

303,074

 

 

216,603

Other noncurrent assets

 

1,040

 

 

1,206

Total assets

$

982,078

 

$

815,594

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

42,818

 

$

20,163

Accrued expenses and other current liabilities

 

28,240

 

 

11,392

Current portion of liability related to tax receivable agreement

 

11,769

 

 

9,290

Finance lease obligations, current portion

 

4,867

 

 

3,823

Operating lease liabilities, current portion

 

4,880

 

 

4,247

Total current liabilities

 

92,574

 

 

48,915

 

 

 

 

Deferred tax liability, net

 

1,172

 

 

786

Liability related to tax receivable agreement, net of current portion

 

269,838

 

 

195,061

Finance lease obligations, net of current portion

 

5,811

 

 

2,240

Operating lease liabilities, net of current portion

 

17,650

 

 

17,822

Total liabilities

 

387,045

 

 

264,824

 

 

 

 

Equity

 

595,033

 

 

550,770

Total liabilities and equity

$

982,078

 

$

815,594

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

Twelve Months Ended

December 31,

 

2021

 

2020

 

(in thousands)

Cash flows from operating activities

 

 

 

Net income

$

67,470

 

 

$

59,215

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

Depreciation and amortization

 

36,308

 

 

 

40,520

 

Deferred financing cost amortization

 

168

 

 

 

168

 

Stock-based compensation

 

8,620

 

 

 

8,599

 

Provision for expected credit losses

 

310

 

 

 

342

 

Inventory obsolescence

 

3,490

 

 

 

4,840

 

Gain on disposal of assets

 

(1,386

)

 

 

(2,480

)

Deferred income taxes

 

4,829

 

 

 

6,948

 

(Gain) loss from revaluation of liability related to tax receivable agreement

 

(898

)

 

 

555

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(45,492

)

 

 

44,829

 

Inventories

 

(36,083

)

 

 

18,201

 

Prepaid expenses and other assets

 

(2,789

)

 

 

6,177

 

Accounts payable

 

22,281

 

 

 

(19,434

)

Accrued expenses and other liabilities

 

16,628

 

 

 

(10,893

)

Payments pursuant to tax receivable agreement

 

(9,697

)

 

 

(14,207

)

Net cash provided by operating activities

 

63,759

 

 

 

143,380

 

 

 

 

 

Cash flows from investing activities

 

 

 

Capital expenditures and other

 

(13,939

)

 

 

(24,493

)

Proceeds from sale of assets

 

2,306

 

 

 

6,346

 

Net cash used in investing activities

 

(11,633

)

 

 

(18,147

)

 

 

 

 

Cash flows from financing activities

 

 

 

Payments on finance leases

 

(5,205

)

 

 

(5,317

)

Dividends paid to Class A common stock shareholders

 

(21,158

)

 

 

(17,140

)

Distributions to members

 

(9,742

)

 

 

(16,304

)

Repurchase of shares

 

(3,283

)

 

 

(1,445

)

Net cash used in financing activities

 

(39,388

)

 

 

(40,206

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

272

 

 

 

1,029

 

 

 

 

 

Net increase in cash and cash equivalents

 

13,010

 

 

 

86,056

 

 

 

 

 

Cash and cash equivalents

 

 

 

Beginning of period

 

288,659

 

 

 

202,603

 

End of period

$

301,669

 

 

$

288,659

 

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin

(unaudited)

Adjusted net income and diluted earnings per share, as adjusted are not measures of net income as determined by GAAP. Adjusted net income and diluted earnings per share, as adjusted are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by Revenue. The Company believes this supplemental information is useful for evaluating performance period over period.

 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

 

September 30,

 

December 31,

 

 

2021

 

2021

 

2020

 

2021

 

2020

 

($ in thousands, except per share data)

Net income

$

20,383

 

 

$

17,177

 

 

$

6,136

 

 

$

67,470

 

 

$

59,215

 

Adjustments:

 

 

 

 

 

 

 

 

 

Severance expenses, pre-tax(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,864

 

Other non-operating (income) expense, pre-tax(2)

 

(1,902

)

 

 

 

 

 

 

 

 

(898

)

 

 

555

 

Secondary offering related expenses, pre-tax(3)

 

 

 

 

 

 

 

 

 

 

406

 

 

 

 

Income tax expense differential(4)

 

185

 

 

 

(2,441

)

 

 

151

 

 

 

(12,481

)

 

 

(6,455

)

Adjusted net income

$

18,666

 

 

$

14,736

 

 

$

6,287

 

 

$

54,497

 

 

$

55,179

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share, as adjusted

$

0.25

 

 

$

0.19

 

 

$

0.08

 

 

$

0.72

 

 

$

0.73

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, as adjusted(5)

 

76,148

 

 

 

76,082

 

 

 

75,740

 

 

 

76,107

 

 

 

75,495

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

129,916

 

 

$

115,363

 

 

$

68,090

 

 

$

438,589

 

 

$

348,566

 

Net income margin

 

15.7

%

 

 

14.9

%

 

 

9.0

%

 

 

15.4

%

 

 

17.0

%

Adjusted net income margin

 

14.4

%

 

 

12.8

%

 

 

9.2

%

 

 

12.4

%

 

 

15.8

%

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement.

(3)

Reflects fees and expenses recorded in the first quarter of 2021 in connection with the offering of Class A common stock by certain selling stockholders, excluding underwriting discounts and selling commissions incurred by the selling stockholders.

(4)

Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of Cactus LLC at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 27.0% for the three months ended December 31, 2021, 28.0% for the three months ended September 30, 2021, 27.0% for the twelve months ended December 31, 2021 and 24.0% on income before income taxes for the three and twelve months ended December 31, 2020.

(5)

Reflects 59.0, 58.2, and 47.6 million weighted average shares of basic Class A common stock and 16.7, 17.5 and 27.8 million of additional shares for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020, and 55.4 and 47.5 million weighted average shares of basic Class A common stock and 20.3 and 27.9 million of additional shares for the twelve months ended December 31, 2021 and December 31, 2020, respectively, as if the weighted average shares of Class B common stock were exchanged and canceled for Class A common stock at the beginning of the period, plus the effect of dilutive securities.

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Net income margin and Adjusted EBITDA margin

(unaudited)

EBITDA and Adjusted EBITDA are not measures of net income as determined by GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below.

Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by Revenue. Cactus presents EBITDA, Adjusted EBITDA, Net income margin and Adjusted EBITDA margin because it believes they provide useful information regarding the factors and trends affecting the Company’s business.

 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

 

September 30,

 

December 31,

 

 

2021

 

2021

 

2020

 

2021

 

2020

 

($ in thousands)

 

($ in thousands)

Net income

$

20,383

 

 

$

17,177

 

 

$

6,136

 

 

$

67,470

 

 

$

59,215

 

Interest (income) expense, net

 

142

 

 

 

299

 

 

 

150

 

 

 

774

 

 

 

(701

)

Income tax expense

 

7,089

 

 

 

3,290

 

 

 

2,137

 

 

 

7,675

 

 

 

10,970

 

Depreciation and amortization

 

8,828

 

 

 

9,128

 

 

 

9,258

 

 

 

36,308

 

 

 

40,520

 

EBITDA

 

36,442

 

 

 

29,894

 

 

 

17,681

 

 

 

112,227

 

 

 

110,004

 

Severance expenses(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,864

 

Other non-operating (income) expense(2)

 

(1,902

)

 

 

 

 

 

 

 

 

(898

)

 

 

555

 

Secondary offering related expenses(3)

 

 

 

 

 

 

 

 

 

 

406

 

 

 

 

Stock-based compensation

 

2,074

 

 

 

2,108

 

 

 

2,163

 

 

 

8,620

 

 

 

8,599

 

Adjusted EBITDA

$

36,614

 

 

$

32,002

 

 

$

19,844

 

 

$

120,355

 

 

$

121,022

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

129,916

 

 

$

115,363

 

 

$

68,090

 

 

$

438,589

 

 

$

348,566

 

Net income margin

 

15.7

%

 

 

14.9

%

 

 

9.0

%

 

 

15.4

%

 

 

17.0

%

Adjusted EBITDA margin

 

28.2

%

 

 

27.7

%

 

 

29.1

%

 

 

27.4

%

 

 

34.7

%

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement.

(3)

Reflects fees and expenses recorded in the first quarter of 2021 in connection with the offering of Class A common stock by certain selling stockholders, excluding underwriting discounts and selling commissions incurred by the selling stockholders.

Cactus, Inc. – Supplemental Information

Depreciation and Amortization by Category

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

 

September 30,

 

December 31,

 

 

2021

 

2021

 

2020

 

2021

 

2020

 

(in thousands)

 

(in thousands)

Cost of product revenue

$

758

 

$

798

 

$

813

 

$

3,176

 

$

3,506

Cost of rental revenue

 

6,272

 

 

6,424

 

 

6,664

 

 

25,812

 

 

28,063

Cost of field service and other revenue

 

1,705

 

 

1,750

 

 

1,601

 

 

6,863

 

 

8,075

Selling, general and administrative expenses

 

93

 

 

156

 

 

180

 

 

457

 

 

876

Total depreciation and amortization

$

8,828

 

$

9,128

 

$

9,258

 

$

36,308

 

$

40,520

Cactus, Inc. – Supplemental Information

Estimated Market Share

(unaudited)

Market share represents the average number of active U.S. onshore rigs Cactus followed (which Cactus defines as the number of active U.S. onshore drilling rigs to which it was the primary provider of wellhead products and corresponding services during drilling) as of mid-month for each of the three months in the applicable quarter divided by the Baker Hughes U.S. onshore rig count quarterly average. Cactus believes that comparing the total number of active U.S. onshore rigs to which it was providing its products and services at a given time to the number of active U.S. onshore rigs during the same period provides Cactus with a reasonable approximation of its market share with respect to wellhead products sold and the corresponding services it provides.

 

Three Months Ended

 

December 31,

 

September 30,

 

December 31,

 

2021

 

2021

 

2020

Cactus U.S. onshore rigs followed

228

 

 

203

 

 

127

 

Baker Hughes U.S. onshore rig count quarterly average

543

 

 

483

 

 

295

 

Market share

42.0

%

 

42.0

%

 

43.1

%

 

Contacts

Cactus, Inc.

John Fitzgerald, 713-904-4655

Director of Corporate Development and Investor Relations

IR@CactusWHD.com

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