HOUSTON, TX / ACCESSWIRE / May 13, 2019 / National Energy Services Reunited Corp. ('NESR' or the 'Company') (NASDAQ: NESR) (NASDAQ: NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ('MENA') and Asia Pacific regions, today reported its financial results for the quarter ended March 31, 2019.
Operating and Financial Highlights
Revenue for the first quarter of 2019 is $152 million, growing 29% as compared to the prior-year quarter of $118 million.
Net income for the first quarter of 2019 is $13 million. Net income, adjusted for transaction and integration costs of the Company's recent business combination (the 'Business Combination'), is $15 million. Net income more than doubled from the prior year period on a combined basis.
Adjusted EBITDA for the first quarter of 2019 is $41 million as compared to $31 million in the prior year period producing year-over year-growth of over 30%.
U.S. GAAP earnings per share ('EPS') of $0.15 reported for the first quarter of 2019. Adjusted for transaction and integration costs related to the Business Combination, the Company reported adjusted earnings per share of $0.17 for the first quarter of 2019.
The Company completed a refinancing of existing debt with borrowing capacity of $450 million.
Sherif Foda, Chairman of the Board and CEO of NESR said, 'We have started the year with solid execution and we continue to demonstrate strong performance and high growth rates compared to the industry in pursuit of our goal to become the recognized national champion in the Middle East and North Africa regions. We have set our goals high in 2019 and are stretching into new locations and new product lines. As we expect E&P spending to continue to ramp up in future quarters, our operations teams are aggressively pursuing several opportunities and positioning the Company to gain market share and generate market leading returns. I remain extremely proud of our employees and am honored to lead this team to realization of our united vision.'
Mr. Foda continued, 'During the first quarter, we continued to capture incremental market share on existing contracts and were able to lessen seasonality effects on our financials. I expect stronger spending in the region in the coming years and the broader commodity environment provides further support for increased E&P spending. We made investments in the first quarter of this year to put equipment and resources into the organization that we expect will provide meaningful and more pronounced growth in the coming quarters. Finally, this quarter we completed a milestone refinancing for the Company which will provide improved financial flexibility through better rates, financial covenant requirements that reflect the growth of the Company, and increased capacity, which gives us additional agility to respond to inorganic opportunities.'
Net Income Results
The Company had net income for the first quarter of 2019 totaling $13.2 million, which includes the impact of $1.4 million of transaction and integration costs related to the Business Combination and $4.1 million of purchase accounting related amortization costs. Adjusted for the impact of integration costs, net income for the first quarter of 2019 is $14.5 million. The income tax expense for the first quarter of 2019 was $2.9 million making the effective tax rate for the Company 18.3%.
The Company reported $0.15 of EPS for the first quarter of 2019 compared to $0.02 per share during the Predecessor first quarter period of 2018 and $0.26 per share during the fourth quarter 2018 period. Adjusted for the impact of transaction and integration costs related to the Business Combination, EPS for the first quarter of 2019 is $0.17.
See 'Business Combination Accounting and Presentation of Results of Operations' section below for additional information on current reporting conventions.